Week Ending 22nd August 2025

Dear patrons, amidst geopolitical activity and domestic reforms announced on Independence Day, the markets gained some lost ground over last couple of weeks. Benchmark Nifty closed positive on 4 out of the five sessions. However, end of week session saw bears getting the better of bulls squandering half of the gains accumulated over four sessions.

Globally, the US and Russian presidents met for a solution to the ongoing crisis, but the meeting was inconclusive. Although both parties agreed to meet again to arrive at a solution. The US indices were a mixed bag over the week but ended on a strong note on expectation of interest rate cut earlier than anticipated.

Domestically, India's PMI (Purchasing Manager's Index) surged to 65.2 in August. Manufacturing and Services sector contributed most to the PMI with robust growth. Services PMI touched an all-time high at 65.6. Overall, August PMI saw a healthy growth of over 6% compared to July

Let's take a look at charts and try to figure out moves for the coming week.

As stated in the previous blog Nifty found resistance around 25100-25200 (you may read it here Weekly Market Update: Week Ending 15th August 2025). Nifty after a gap up on Monday moved northwards and crossed 25000 to touch a high of 25153 and saw a sharp turn around to close the week below 24900. For the coming week 25100-25200 remains a stiff resistance zone. Support for Nifty is placed around 24800 followed by strong support around 24600. Coming week being expiry week for derivatives contract is expected to remain volatile with a positive bias. 

Coming to BankNifty, it was the weaker of the two benchmark indices. BankNifty was firmly in bear grip and closed the week down quarter of a percent. BankNifty has support around 55000 which should prove to be difficult to break on a closing basis. Resistance for BankNifty is placed around 55700-55800. It needs to close above 56600 for any meaningful up move.

Almost all sectoral indices were in the red on Friday, presenting a good opportunity for investors to accumulate quality stocks. Diversification of portfolio is the key to making more gains and mitigating risk. FMCG and Auto were two sectors where there was positive action. This move was on account of GST rejig and steps being taken to increase consumption.

Traders are advised caution for the coming week. Markets are likely to be volatile and extreme moves on either side can't be ruled out. Risk management and adhering to rules strictly is needed. 

P.S.: This communication is for educational purpose only and does not recommend buying or selling any stock or index. Trade at your own risk.