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Stock market today-Indian stock market benchmarks, the Sensex and Nifty 50, extended their winning streak for a fifth consecutive session, closing with modest gains on Wednesday, 20 August. Positive sentiment was driven by proposed GST reforms, India’s credit rating upgrade by S&P Global, and signs that the Russia-Ukraine war may be approaching an end. Gains, however, were capped amid concerns over the looming August 27 deadline for Trump-era secondary tariffs.

The Sensex added 213 points, or 0.26%, to finish at 81,857.84, while the Nifty 50 rose 70 points, or 0.28%, to 25,050.55. The BSE Midcap and Smallcap indices advanced 0.39% and 0.30%, respectively.

Indian equity markets extended their winning streak to a fifth session, with the Nifty 50 rising 0.28% to close at 25,050. After a tepid start, the index gained momentum within the first hour and maintained a steady uptrend throughout the session. Market breadth was positive, with 1,712 stocks advancing versus 1,263 declining on the NSE, reflecting broad-based participation.

Sectoral gains were led by IT and FMCG, with the Nifty IT index surging over 2.5% on growing expectations of a potential U.S. Federal Reserve rate cut, which could boost demand for Indian tech exports. In contrast, Pharma and Private Bank indices came under mild profit-booking pressure, ending in negative territory.

On the technical front, the Nifty 50 decisively surpassed both its 50-day moving average (50-DMA) and the key psychological level of 25,000, reinforcing the short-term bullish bias. The Relative Strength Index (RSI) has been climbing steadily over the past three sessions, now near 57, signalling strengthening momentum. Meanwhile, the MACD has turned marginally positive, indicating easing downside pressure, though it remains below both its signal line and the zero axis, suggesting that a clear confirmation of a sustained trend reversal is yet to emerge.

According to O’Neil’s market direction methodology, the market status has been downgraded to an “Uptrend Under Pressure" as the Nifty breached its 50-DMA and the distribution day count stands at four.

The Nifty 50 closed above 25,000 and its 50-DMA, supported by improved momentum on daily and weekly charts. This constructive price action strengthens the near-term outlook, with the next key resistance zone placed between 25,250–25,350, provided the index holds above 24,850. On the downside, a breach below 24,850 could trigger renewed volatility, potentially pushing the index into the 24,650–24,850 support range, making these levels crucial for monitoring directional cues in the coming sessions.

On Wednesday, the Nifty Bank opened on a weak note and traded with high volatility, remaining in negative territory for most of the session. The index formed a bearish candle on the daily chart with a lower-high and lower-low structure, signalling persistent selling pressure.

Resistance near the 21-day moving average (21-DMA) capped upside momentum. The index opened at 55,751.50 and oscillated within a narrow range of 55,577.35–55,812.60, ultimately closing at 55,698.50, just above the day’s low. The price action highlights the index’s struggle to sustain gains against overhead resistance.

The Relative Strength Index (RSI) has inched lower to 47, indicating mild weakness in momentum. Meanwhile, the MACD has turned positive after several weeks of negative crossover but remains below the central line, warranting caution.

According to O’Neil’s Market Direction model, the Bank Nifty remains in an “Uptrend Under Pressure." In this context, investors are advised to maintain selective exposure to quality stocks, focusing on disciplined risk management and high-conviction opportunities.

The index faces resistance near its 21-DMA; a sustained move above this level could pave the way for the next key hurdle at the 50-DMA, around 56,316. For bullish momentum to gain traction, Nifty Bank must decisively cross and hold above this level in upcoming sessions. On the downside, immediate support lies near the 100-DMA at 55,280. A breach below this zone could trigger heightened volatility and further downside risk.

MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. Trade name: William O'Neil India Pvt. Ltd. (Sebi Registered Research Analyst Registration No.: INH000015543).

Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.

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