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Below the Quote on Pre-market comment 21th Aug 2025 by Amruta Shinde, Technical & Derivative Analyst, Choice Broking

Indian benchmark indices are expected to open on a flat to positive note today, as indicated by the GIFT Nifty, which signals an uptick of around 25 points in the Nifty 50. Market sentiment remains cautiously optimistic but continues to be influenced by persistent volatility and mixed global cues.

In the previous session, the Nifty opened flat and faced initial pressure, but buying from lower levels helped it reclaim the 25,000 mark, hitting an intraday high of 25,088.70 before closing at 25,050. A strong bullish candlestick on the daily chart signals renewed strength and momentum. The index is trading comfortably above all key moving averages, confirming a firm underlying trend. Immediate support lies at 25,000 and 24,800, while resistance is placed at 25,100 and 25,200.

The Bank Nifty, on the other hand, opened with a gap-down and traded sideways. Although it attempted a recovery, it ended slightly below the 55,700 mark. On the daily chart, the index formed a small bearish candlestick with wicks on both sides, reflecting indecision and selling pressure at higher levels. It continues to trade below its short- and medium-term EMAs, highlighting persistent weakness. Key supports are placed at 55,500 and 55,300, while resistance lies at 55,800, with the next hurdle around 56,000–56,200.

On the institutional front, Foreign Institutional Investors (FIIs) extended their selling for the second straight day, offloading equities worth Rs.1,100 crore on August 20, while Domestic Institutional Investors (DIIs) were net buyers, purchasing equities worth Rs.1,806 crore.

Given the backdrop of heightened volatility and mixed global signals, traders are advised to adopt a cautious “buy-on-dips” approach. Booking partial profits during rallies and maintaining tight trailing stop-losses is recommended to manage risk effectively. Fresh long positions should be considered only if the Nifty sustains above the 25,250 level. While the broader market trend remains cautiously bullish, close monitoring of key technical levels and global developments will be crucial.

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