Can Nifty reclaim 25,000 today? Key levels to track on August 18

FIIs were net sellers of equities worth Rs 1,926 crore on Thursday, while DIIs were net buyers to the tune of Rs 3,895 crore, provisional exchange data showed.

Benchmark indices Nifty and Sensex are likely to kickstart the session on a strong note on Monday, August 18, as the much-awaited rationalisation of goods and services tax (GST) may come soon, as Prime Minister Modi announced on Independence Day. GST-sensitive stocks such as auto and FMCG will likely be in focus in today's session. At about 8:30 am, the Gift Nifty was trading at 24,989, higher by 1.36 percent of 334 points.

On Thursday, the last trading session of the previous week, Indian equity indices ended marginally higher with Nifty above 24,600. For the week, BSE Sensex and Nifty added a percent each, snapping a six-week losing streak.

FIIs were net sellers of equities worth Rs 1,926 crore on Thursday, while DIIs were net buyers to the tune of Rs 3,895 crore, provisional exchange data showed.

At present, the index is repeatedly facing supply pressure near the 20-DEMA cluster at 24,700–24,800. A sustained close above this area could spark short covering. On the flip side, failure to hold above 24,500 could extend the decline towards the next immediate support at 24,320, which may accelerate selling pressure. The daily RSI remains around 40, showing no strong reversal signal. Overall, the structure favours a sideways bias, with range-bound strategies continuing to hold merit.

"A decisive close above 55,650 or a breach below 54,900 will be essential to escape the current congestion zone. The index closed on a positive note, ending its two-week decline and forming a Bullish Harami on the weekly chart while holding firmly above its 20-WEMA, which sits in the key demand zone of 54,900–55,000. Yet, it remains trapped within the broader 55,700–54,900 corridor — last week’s high and low — which has now emerged as a pivotal zone for the next move. A breakout above resistance could fuel momentum, forcing major call writers to unwind positions and opening the door to a sharper upmove," Dhupesh Dhameja of SAMCO Securities said. "On the downside, a failure to maintain 54,900 support could drag the index towards 54,300, the next immediate support level, potentially accelerating selling pressure," he added.

India VIX edged up 1.77 percent to settle at 12.35. Despite global headwinds, volatility remains muted, reflecting expectations of consolidation rather than a sharp decline. This indicates caution among market participants but not outright fear.

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, fell to 1.01 on August 14, compared to 1.08 in the previous session. The increasing PCR, or being higher than 0.7 or surpassing 1, means traders are selling more Put options than Call options, which generally indicates the firming up of a bullish sentiment in the market.