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Below the Quote on Pre-market comment 25 Aug 2025 by Amruta Shinde, Technical & Derivative Analyst, Choice Broking

Indian benchmark indices are likely to open on a positive note today, with the GIFT Nifty indicating an uptick of around 100 points in the Nifty 50. Market sentiment remains cautiously optimistic, though persistent volatility and mixed global cues continue to weigh on investor confidence.

On Friday, Indian equities ended the week under pressure as persistent selling erased the gains of the prior four sessions. Technically, Nifty is hovering near its short-term support at 24,840, which aligns with the 50-day EMA. A breakdown below this level could drag the index toward 24,650 and further down to the broader support zone of 24,500. On the upside, resistance is seen in the 25,150–25,350 zone, and a decisive close above this range may trigger a fresh rally.

Bank Nifty also ended lower, closing near 55,149 after facing rejection in the 56,000–56,160 zone, highlighting strong selling pressure. The index broke its recent range, filled a downside gap, and erased more than 800 points of weekly gains. A strong bearish candle closed below the key 55,500 support, reinforcing downside momentum. If the index slips below 55,000, further weakness toward 54,900 (20-week EMA) and 54,450 cannot be ruled out. On the upside, immediate resistance lies at 55,500, with further targets at 55,750 and 56,000 if sustained buying emerges.

On the flows front, Foreign Institutional Investors (FIIs) sold equities worth Rs.1,622 crore on August 22, while Domestic Institutional Investors (DIIs) offloaded shares worth Rs.329 crore.

Given the backdrop of heightened volatility and mixed global signals, a cautious “buy-on-dips” strategy is advisable. Traders may consider booking partial profits on rallies and maintaining tight trailing stop-losses to manage risk. Fresh long positions should be initiated only if Nifty sustains above 25,250. While the broader trend remains cautiously bullish, close monitoring of key technical levels and global cues will be essential in the sessions ahead.

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