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Below the Quote on Pre-market comment 20th Aug 2025 by Mandar Bhojane, Senior Technical & Derivative Analyst, Choice Broking

Indian benchmark indices, Sensex and Nifty, opened on a weak note today, tracking GIFT Nifty, which was hovering around 24,971.50 earlier in the morning. On August 19, the bulls extended their dominance for the fourth straight session, with the Nifty briefly crossing the 25,000 mark. The rally was led by heavyweights and broad-based buying across sectors, barring pharma. However, profit booking at higher levels prevented the index from sustaining above the milestone.

On the technical front, the Nifty has been consolidating in a sideways-to-bullish trend after a gap-up opening. The index continues to find support at the 20, 50, 100, and 200 EMAs, underlining strong underlying strength. If Nifty sustains above 25,050, it could head towards 25,250 and 25,500 levels in the coming sessions. Momentum remains bullish, and dips are likely to be seen as buying opportunities. RSI at 55 is also trending upwards, signaling strengthening positive momentum.

Bank Nifty, however, remains an underperformer compared to Nifty. The index is still trading below its recent breakout zone, with immediate resistance placed at 56,000. A move above this level could open the door for fresh momentum. On the downside, support lies near 54,995 at the 100 EMA. Until the index decisively crosses 56,000, its trend is expected to remain range-bound to weak relative to the broader market.

The Foreign institutional investors (FIIs) sold equities worth Rs 634 crore on August 19, while Domestic institutional investors (DIIs) bought equities worth Rs 2261 crore on the same day.

Overall, the combined technical and derivatives setup suggests that the market bias remains positive. A decisive close above the 25,000 mark on Nifty could trigger fresh momentum. Traders are advised to remain cautiously bullish, accumulate quality stocks on declines, and protect their positions with appropriate stop-losses to manage risk.

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