With the Nifty crossing a key resistance level and momentum indicators signaling strength, Indian equities appear set for a modest upswing on Thursday, August 21. Analysts believe the bullish momentum is likely to continue, provided there are no unexpected global shocks.
Stock Market Outlook August 21: Sector-wise Performance Updates
On Wednesday, benchmark indices extended their winning streak for the fifth consecutive session, with the Sensex gaining 213 points and the Nifty advancing by 70 points. The gains were primarily led by buying in IT, FMCG, and realty stocks. Market sentiment remained optimistic as investors awaited key signals from the US Federal Reserve’s Jackson Hole Symposium later this week.
Out of the 50 Nifty stocks, 26 ended in the green, while only 15 out of 30 Sensex stocks closed higher. In the banking space, 10 out of 12 Nifty Bank constituents declined, reflecting relative underperformance in the financial sector. The Indian rupee closed 12 paise lower at 87.07 against the US dollar, reflecting caution ahead of global events.
According to Vinod Nair, Head of Research at Geojit Financial Services, the Indian market is being supported by strong domestic inflows and healthy macroeconomic fundamentals. However, he cautioned that expensive valuations, along with global headwinds like US tariffs and oil price volatility, may cap further gains.
Still, the technical outlook remains positive, and as long as Nifty holds above the 24,850 support zone, the uptrend is likely to continue into Thursday’s session.
Sensex Prediction Today: Positive Bias Continues
The BSE Sensex ended Wednesday’s session higher by 213 points, extending gains for the fifth straight day. Gains in heavyweights like Infosys, TCS, NTPC, HUL, and Nestle India supported the upmove. The buying trend in midcaps and smallcaps also indicates broad-based participation, suggesting more room for upside if global cues remain favorable.
Analysts believe the Sensex could continue trading with a positive bias, especially if global markets react positively to the upcoming Jackson Hole speech by US Fed Chair Jerome Powell.
Nifty Prediction Today: Bulls Gain Control Above 25,000
The Nifty 50 closed decisively above the psychological resistance of 25,000, settling near 25,070. This move is considered significant, as this level had the highest call open interest, signaling strong resistance until now. The breakthrough indicates that the bulls are gaining control, and further upside could be in the cards.
According to Sudeep Shah, Head of Research & Derivatives at SBI Securities, the index is now trading comfortably above its 20 and 50-day Exponential Moving Averages (DEMA), which reinforces the strength of the trend. The Relative Strength Index (RSI) has also been rising consistently for the past three sessions, reflecting growing bullish momentum.
Nifty50 Technical View: What Traders Are Expecting on August 21?
The Relative Strength Index (RSI), a momentum indicator, has been rising steadily for three sessions, indicating growing market strength. Additionally, call writers at the 25,000 strike exited their positions, while put writers increased their activity, helping to push the index higher. As per market analysts, the next immediate resistance lies at 25,150-25,200, while support is seen at 24,850-24,800. If this support is breached, the index may decline toward 24,650.
Sudeep Shah from SBI Securities noted that Nifty has finally broken out above the 25,000-25,020 zone, overcoming a strong resistance area due to high call open interest. He confirmed that the index is technically strong, with the RSI and price momentum in favor of bulls. He added that the exit of call writers and buildup by put writers further solidified the breakout.
Bank Nifty Today: Technical View
On the other hand, Bank Nifty has underperformed, closing below its recent highs and remaining below its key short-term moving averages. The index has been finding support in the 55,550-55,600 range, but the absence of strength in heavyweight banks like HDFC Bank and ICICI Bank has weighed on sentiment. The immediate resistance is placed at 55,950-56,000, while a breakdown below 55,550 could open the door for further downside toward 55,400-55,350.