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Indian Market Opens Soft After Four-Day Rally

By Mandar in Indian Market Insights —

Market Overview: Weak Opening on August 20, 2025

The Indian stock market commenced on a weaker note on August 20, 2025, following a four-day rally. The Sensex and Nifty experienced declines as investors engaged in profit-taking after recent gains.

  • The Nifty opened around 24,966 points, down approximately 45 points.
  • The GIFT Nifty also indicated a subdued start, trading at 24,969.50.

Recap of Yesterday's Market Performance

Yesterday, the Indian equity indices demonstrated strong resilience leading broad-based gains, including sectors like automobile, oil & gas, metals, and FMCG.

  • The Nifty briefly surpassed the 25,000 mark before profit-taking occurred.
  • The Sensex rose by 0.46% to close at 81,644.39.
  • The Nifty closed at 24,980.65, up 0.42%.
  • Midcap and smallcap stocks surged by about 1% each.

Technical Analysis

The Nifty's technical outlook presents a mixed picture marked by bullish signals amidst consolidation.

  • The Nifty is trading above key moving averages, including the 10-day and 20-day EMAs.
  • Momentum indicators such as the RSI and MACD suggest bullish undertones.
  • Immediate support is at 24,800
  • Key resistance levels are identified at 25,009, 25,042, and 25,095.
  • Experts suggest a buy-on-dips strategy as long as 24,770 (21-DMA) is maintained.

Investor Activity

  • Foreign investors were net sellers, offloading shares worth Rs 634 crore.
  • Domestic institutional investors remained net buyers, with purchases totaling Rs 2,261 crore.
  • In the derivatives segment, RBL Bank and Titagarh remained in the F&O ban list.

Volatility and Market Sentiment

  • Market volatility decreased, with the India VIX dropping 4% to 11.79, indicating reduced investor fear.

Market Outlook

The overall market outlook remains cautiously optimistic for a potential push beyond the 25,000 level, contingent upon the stability of support zones.