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MARKET OVERVIEW

Indian equities remained resilient in August 2026, supported by strong domestic institutional participation and healthy economic fundamentals. FIIs/FPIs recorded equity outflows of Rs7,532 crore in July, while DIIs extended their buying streak to 37 consecutive months, investing Rs58,268 crore. Gross GST collections increased 14.8% YoY to Rs1.99 lakh crore in August, signalling sustained economic activity. Meanwhile, the HSBC India Manufacturing PMI moderated to 52.8 from 53.5 in July, indicating continued manufacturing expansion despite softer growth momentum, weaker new orders and competitive pressures. Overall, strong domestic liquidity and economic fundamentals provided support despite global uncertainties.

MARKET OUTLOOK

Equity markets enter the period with a balanced outlook, supported by resilient corporate earnings, and continued strength in AI and semiconductor stocks, and robust domestic growth, with India’s Q1 FY27 real GDP expanding 7.8%. However, elevated crude prices above $90/bbl, Middle East geopolitical risks, persistent inflation and rising expectations of tighter US monetary policy could keep volatility elevated. With global markets closely tracking oil prices, economic data and Fed signals, the focus is expected to remain on earnings visibility, valuation comfort and companies with strong fundamentals and sustainable growth prospects.

Nifty PE Movement 

Nifty Dividend Yield Chart

MONTHLY OUTLOOK

The Month That Was:-

Nifty lost 303.20 points in the month of August, 2026

Below is a summary of Top Nifty Gainers & Losers:

Top Nifty Gainers Aug 2026 Top Nifty Losers Aug 2026

• Breadth was negative in August 2026, with 19 Nifty stocks closing in the green versus 31 stocks in the red.

• Relative comparison showed Metal, Pharma, IT emerged as the top-performing sectors, while FMCG, Media and Energy underperformed in August 2026

Sector Relative Performance 

* All the sectors have been compared with Nifty & the zero line represent Nifty. The movement of the sector vis-a-vis Nifty whether they outperform or underperform is shown in the above chart. It shows which sectors have attracted inflows and also the sectors from where money has exited.

Outlook for Nifty 50 (24,080.40)*

Support 23,800/23,600/23,300

Resistance 24,200/24,400/ 24,600

• Nifty continued to trade within its broader range with a cautious undertone. The index encountered overhead resistance during this phase and eventually ended August on a weaker note, declining 1.24% to close at 24,080.40.

• On the sectoral front, Metal, Pharma and IT emerged as the key performers, supporting overall market strength, while FMCG continued to underperform, remaining the major drag, followed by Media and Energy.

• Technically, after an extended sideways movement, Nifty has broken down from its broader range and slipped below the trend line support, indicating a weakening near-term structure. The index also faced resistance from key short- to long-term moving averages and failed to sustain the rebound, subsequently forming an intermediate lower high and lower low. The prevailing setup suggests further weakness, with the possibility of further downside towards the 23,700-23,600 mark. On the upside, any recovery is likely to face immediate resistance around 24,200, where a confluence of key moving averages is placed, followed by the 24,400 zone. A decisive move above 24,400 would be required to revive the shortterm structure. Hence, investors should maintain a cautious approach towards the index and adopt a selective strategy in stocks and sectors displaying relative strength on a rotational basis.

Outlook for Bank Nifty (58,024.95)*

Support 56,800/ 56,000/55,300

Resistance 58,600 / 59,200/ 60,000

• The banking index remained range-bound within a 1,000-point band, largely fluctuating between the 57,000–58,000 zone, reflecting a muted performance. The index settled with a month-on-month gain of 1.33% at 58,024.95.

• Performance across private and PSU banks remained mixed, with HDFC Bank emerging as a relative laggard, losing over 5% and weighing on the index. In contrast, Union Bank and Kotak Bank displayed relative resilience.

• The Banking index has maintained its footing above the 200- day EMA during the consolidation phase. However, a decisive break down below this key long-term moving average, coinciding with the 56,500 support zone, could trigger intermediate pressure towards 55,800–55,600. On the upside, a sustained move above the 58,000 zone is crucial to resume the uptrend and pave the way towards 59,000 and 60,000 levels

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