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Below the Quote on Market Wrap 26th August 2025 by Mr. Ajit Mishra - SVP, Research, Religare Broking Ltd

"Markets traded under pressure and slipped below crucial support levels, derailing the recent recovery momentum. After an initial sharp fall, the Nifty traded in a narrow range for most of the session; however, renewed selling in the final hours pushed the index further lower. It eventually settled near the day’s low at 24,712, down 1.02%. Sectoral performance was broadly weak, with realty, pharma, and metal stocks bearing the brunt of the decline, while FMCG displayed relative resilience with marginal gains. Broader markets underperformed, with mid- and small-cap indices losing between 1.69% and 2.08%.

Sentiment was largely dampened by caution ahead of the upcoming tariff deadline, which weighed heavily on export-sensitive sectors. This pressure was compounded by sustained foreign institutional selling, a weakening rupee, and a rebound in crude oil prices, prompting investors to reduce risk exposure.

With the Nifty slipping below its immediate support at the 20-day exponential moving average (20-DEMA) and the banking index breaching the critical base around 54,900, further downside cannot be ruled out. We expect the index to fill the recent gap and retest its medium-term moving average around 24,600. Traders are advised to align their positions accordingly. Going ahead, export-oriented sectors may continue to face selling pressure on any uptick, while domestic demand-driven segments like FMCG and consumer discretionary could offer relative stability. Key triggers to monitor include foreign fund flows, global market trends, and any policy measures aimed at cushioning trade-related concerns."

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