Market Commentary (closing) for 25th August 2026 by Bajaj Broking
Market Closing Commentary
Indian benchmark indices staged a recovery in the final hour of trade and closed firmly in positive territory after a volatile session on 25 August, the monthly expiry day. Buying interest strengthened towards the close, helping the Nifty reclaim and sustain above the crucial 24,300 mark. The late-session recovery reflected improved risk appetite despite heightened expiry-related volatility.
At close, the Sensex gained 286 points or 0.37% to settle at 77,656, while the Nifty 50 advanced 115.50 points or 0.48% to close at 24,334.
On the sectoral front, Consumer Durables, Infrastructure, IT, Media, Pharma, and PSU Banks emerged as the key gainers, supported by broad-based buying interest. On the downside, Energy, Metal, and Private Banks witnessed selling pressure and remained the key laggards.
The broader market outperformed the benchmark indices. The Nifty Midcap 100 index gained 0.54% and touched a fresh all-time high, reflecting continued strength and strong participation in the broader market. In contrast, the Nifty Small cap 100 index ended marginally lower.
Nifty Outlook
Index formed a bearish candle with shadows in either direction signalling consolidation amid stock specific action as index failed to move above last week high 24,360 and gave up its Friday’s gain to close around the 50 days EMA.
Volatility is likely to be high in tomorrow session on account of the monthly F&O expiry. Index holding above 24,130 will lead to a pullback towards 24,280 and 24,360 levels. In the coming sessions, a follow through strength above last week high 24,360 will signal extension of the pullback towards 24,600 levels in the coming weeks. While failure to move above last week high will signal consolidation in the range of 24,000-24,350.
Overall index is expected to extend the recent consolidation and trade in the broad range of 24,000-24,600 in the coming sessions.
Nifty has short-term support placed at 24,000-23,800 levels being the confluence of the trendline support joining last 4 months lows, previous major gap area and 61.8% retracement of previous up move from 23,606 to 24,774.
Bank Nifty Outlook
Bank Nifty formed a bearish candle with a higher high and a lower low highlighting intraday volatility and profit booking at higher levels as the index closed around the 50 days EMA.
The broader 8 weeks consolidation range remains intact between 56,500 and 58,700. We expect the index to extend the current consolidation and only a breakout or breakdown will signal a directional momentum.
Within the consolidation index is facing resistance around 58,000 levels. Index sustaining below the same will open downside towards 57,000 and 56,500 levels, being the confluence of 200 days EMA and the lower band of the broader consolidation range.
In the smaller time frame Bank Nifty in the last 15 sessions is seen consolidating in a narrow range retracing just 50% of its previous 7 sessions up move from 56,023 to 58,248. A shallow retracement signals higher base formation. On the higher side a move above 58,000 will open upside towards 58,500-58,700 levels in the coming weeks being the upper band of the recent consolidation.
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