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Below the Quote on Market Wrap 22nd August 2025 by Mr. Ajit Mishra - SVP, Research, Religare Broking Ltd

"Markets snapped a six-session winning streak and ended lower, losing nearly a percent as sentiment turned weak from the outset and deteriorated further in the latter half. The Nifty closed near the day’s low at 24,880, down 0.87%. The pressure was broad-based, led by IT and financials, while commodity and FMCG counters also slipped. However, select auto and healthcare names managed to outperform on stock-specific action. Interestingly, the broader indices were relatively resilient and ended with only modest cuts.

The weakness was primarily driven by caution ahead of U.S. Fed Chair Jerome Powell’s Jackson Hole address and renewed concerns around global trade and geopolitical tensions, which dampened risk appetite. Domestic profit-booking after the recent rally and a pause in fresh FPI inflows further weighed on sentiment. With global markets awaiting central bank cues, any unexpected commentary or data could trigger heightened volatility.

On the technical front, the index has moved closer to its key short-term support at the 20-day EMA around 24,800. A decisive breach below this level could open the door for a deeper correction toward the 24,600 zone. On the upside, 25,100–25,250 remains the immediate resistance cluster. For the next session, focus on banking and IT for potential weakness, while autos and select cyclicals could offer stock-specific opportunities. Monitoring global cues and flow trends will be critical for near-term direction."

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