The Nifty 50 extended its uptrend for the fourth consecutive session on August 19, although it struggled again to reclaim the 25,000 level — which aligns with the 50% Fibonacci retracement of the decline from the June high to the August low. This level is expected to be a crucial barrier for further upside toward 25,160, followed by the 25,350–25,400 zone. On the downside, support is placed at 24,800. Meanwhile, momentum indicators also support Bank Nifty, which needs to climb above Monday’s high of 56,156 to resume its upmove toward 56,300 (which is near the 50% Fibonacci retracement from the July high to August low), followed by 56,600. However, 55,600 can act as a key support zone, according to experts.
On August 19, the Nifty 50 jumped 104 points to 24,981, while the Bank Nifty gained 130 points to 55,865, with market breadth favouring bulls. A total of 1,862 shares advanced compared to 862 shares that saw correction on the NSE.
Nifty Outlook and Strategy
Vinay Rajani, Senior Technical and Derivative Analyst at HDFC Securities
Another bullish session unfolded on Dalal Street, marking the fourth consecutive session of gains for the Nifty, which closed slightly below its day’s high.
The index appears to be heading toward its next resistance at 25,160, representing the 61.8% Fibonacci retracement of the entire decline from the recent swing high of 25,669 to the low of 24,337. The 24,775–24,820 band, where the 20-day and 50-day DEMAs coincide, is expected to continue acting as a support zone.
Key Resistance: 25,160, 25,355
Key Support: 24,820, 24,700
Strategy: Buy Nifty Futures near 24,980, with a stop-loss of 24,800, targeting 25,355.
Ashish Kyal, CMT, Founder and CEO of Waves Strategy Advisors
On the daily chart, the Nifty reversed from the major price action support area of 24,300–24,400 in the previous week, and we saw a sharp pullback on the upside. Following optimistic reactions after the Zelenskyy–Trump meeting, hopes rose for easing geopolitical tensions, and proposed changes in the GST system gave traders further relief. As a result, market sentiment remained strong for the second consecutive day.
Nifty has retraced almost 50% of the entire fall from July and, with follow-up buying, is expected to retrace 61.8%, which comes near the 25,160 level.
According to open interest data, the 25,000 strike has the highest open interest on both sides, suggesting that crossing above this level won't be easy. A sustainable breakout above this level could trigger fresh buying in the index. On the downside, 24,728 is the crucial support. A break below it will be a sign of concern.
Key Resistance: 25,220
Key Support: 24,728
Strategy: Long positions can be created above 25,030 with a stop-loss at 24,900 and targets of 25,160 followed by 25,220.
Preeti K Chabra, Founder of Trade Delta
The Nifty broke out of a downward-sloping channel on Monday and is currently trading above the important EMA 40 at 24,839, which now acts as a strong support zone. The index is headed towards the 61.8% retracement level of 25,160.
The daily RSI at 55.1 is trading above the signal line, reflecting strengthening bullish momentum. On the options front, unwinding in in-the-money Call options also indicates a bullish stance in the market.
Key Resistance: 25,160
Key Support: 24,839
Strategy: Traders can consider going long on Nifty Futures if the index sustains above 24,900, for a target of 25,160, with a stop-loss at 24,839.
Bank Nifty - Outlook and Positioning
Vinay Rajani, Senior Technical and Derivative Analyst at HDFC Securities
In the past two sessions, Bank Nifty underperformed the Nifty. However, it managed to reclaim levels above the 50 DEMA. There is a gap area between 55,472 and 55,647, which can act as short-term support. The recent swing low near 54,900 also serves as positional support.
The Bank Nifty is expected to remain a market performer in the days ahead, with immediate resistance in the 56,400–56,600 zone.
Key Resistance: 56,400, 56,600
Key Support: 55,472, 54,900
Strategy: Buy Bank Nifty Futures around 55,850, with a stop-loss of 55,472, targeting 56,600.
Ashish Kyal, CMT, Founder and CEO of Waves Strategy Advisors
On the daily chart, for the past week, Bank Nifty has been protecting its prior day's low on a closing basis. Prices found support at the 100-day EMA, located in the 54,900–55,100 zone, and bounced over 2% from there, primarily led by PSU banks.
Currently, prices are trading near a key resistance at 55,970. A breach above this level is essential for further upside, targeting 56,300 and above.
Additionally, the MACD is about to show a bullish crossover below the zero line for the first time since March 2025, which is a positive signal — though confirmation via follow-up buying is required.
On the downside, 55,500 is the nearest support area. A breach below this may lead to gap filling.
Key Resistance: 56,500
Key Support: 55,500
Strategy: Long positions can be created above 55,970, with targets of 56,300 followed by 56,500 and a stop-loss at 55,640.
Preeti K Chabra, Founder of Trade Delta
Bank Nifty gave a breakout on Monday and managed to close above the 20-SMA (middle Bollinger Band) at 55,859. It is currently facing resistance at the 40 EMA at 55,935 — once surpassed, it could trigger fresh momentum in the index.
It is also taking support at the 23.6% Fibonacci retracement level of 55,629, drawn from the July 2 high of 57,628 to the April 7 low of 49,156.
The daily RSI at 49.5 is trading above the signal line, suggesting improving bullish momentum. On the options front, unwinding in in-the-money Call options also points to a bullish bias.
Key Resistance: 56,156
Key Support: 55,629
Strategy: Buy Bank Nifty around the retracement level of 55,629 for targets of 55,935 followed by 56,156, with a stop-loss at 55,500.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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