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Indian Markets Extend Gains, IT and Auto Lead Rally

By Mandar in Indian Market Insights —

Indian Stock Market Summary - August 20, 2025

The Indian stock market experienced its fifth consecutive session of gains on August 20, 2025. The Sensex closed up 213.45 points at 81,857.84, and the Nifty 50 exceeded the 25,000 mark, settling at 25,050.55.

  • The market demonstrated broad-based strength.
  • IT stocks performed particularly well.
  • Autos, oil & gas, metals, and FMCG also contributed to the rally.
  • Mid and small-cap stocks outperformed.

Market Sentiment Drivers

Several factors fueled the positive market sentiment:

  • Ongoing GST reforms boosted investor confidence across various sectors.
  • Domestic institutional investors (DIIs) remained net buyers, providing support.
  • Foreign portfolio investors (FPIs) turned net sellers.

Technical Analysis

From a technical standpoint, the Nifty showed encouraging signs:

  • The Nifty held above its gap support near 24,800.
  • The 10-day and 20-day exponential moving averages (EMAs) maintained an upward trajectory.
  • The 50-day EMA was close to turning positive.
  • The relative strength index (RSI) rose above 55.
  • A bullish moving average convergence divergence (MACD) crossover supported the positive outlook.

Key Levels to Watch

Investors should monitor the following technical levels:

  • Resistance: 25,050-25,095 (breakout could trigger strong upward movement)
  • Support: 24,850 and 24,750 (expected to absorb dips)
  • Caution: Breach below 24,700 (potential trend reversal)

Key Actions for Investors

Investors are advised to consider the following:

  • Monitor for a decisive breakout above 25,050 for potential strong bullish momentum.
  • Consider buying on dips near the 24,750-24,850 levels.
  • Watch sector leaders in IT, autos, and oil & gas for stock-specific opportunities.
  • Monitor domestic institutional buying trends for market direction clues.
  • Exercise caution if the Nifty falls below 24,700, which may signal a trend reversal.

Conclusion

The market maintains a constructive outlook, and a buy-on-dips strategy is recommended, recognizing that consolidation could precede a further rally.