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On Wednesday, August 20, 2025, Indian equities carried forward their momentum, with benchmark indices closing in the green, supported by positive global cues and rotation across key sectors. The Nifty 50 advanced 69.90 points or 0.28% to finish at 25,050.55, while the Sensex climbed 213.45 points or 0.26%, ending the session at 81,857.84. However, the Bank Nifty slipped 166.65 points or 0.30% to close at 55,698.50, reflecting profit-booking in select financial counters that capped overall gains.

On Wednesday, Indian equities carried forward their momentum, with benchmark indices closing strongly in the green, supported by positive global cues and rotation across key sectors. The Nifty 50 advanced 69.90 points or 0.28% to finish at 25,050.55, while the Sensex climbed 213.45 points or 0.26%, ending the session at 81,857.84. However, the Bank Nifty slipped 166.65 points or 0.30% to close at 55,698.50, reflecting profit-booking in select financial counters that capped overall gains.

Sectoral performance highlighted resilience across cyclical and demand-led pockets. Psu bank (−0.27%), the healthcare Index (−0.26%), and oil & gas (−0.13%) witnessed mild weakness, but strength in other areas outweighed the drag. The service sector surged 0.50%, the metal index gained 0.43%, and the infrastructure index rose 0.29%, reflecting strong momentum in cyclicals and consumption-driven plays.

In stock-specific action, Infosys was the top mover with a sharp 3.90% jump, followed by TCS, which rallied 2.73%, and Hindustan Unilever, advancing 2.50%, all riding on favorable sector trends. On the downside, a few heavyweights capped the upside—Bharata Electronics Limited slipped 2.16%, Bajaj Finance eased 1.61%, and Shriram Finance declined 1.60%.

Globally, softer-than-expected U.S. inflation data boosted hopes of a September Federal Reserve rate cut, while domestically, retail inflation cooling to an eight-year low of 1.55% further lifted investor confidence. Together, these macro positives provided strong support for markets, enabling Nifty to comfortably sustain above the 24,600 mark despite sectoral divergences.

Nifty Technical Analysis – Daily & Hourly

The Nifty 50 ended the session on 20 August 2025 with gains of 103 points, settling at 24,980, firmly reclaiming the 25,000 mark on intraday basis. This close above the psychological level is significant because derivatives positioning shows that traders have been aggressively writing puts at 24,900 while the heaviest call concentration has now moved up to 25,100. With this shift, the market is signalling that the short-term support base has been raised higher, and resistance is inching up.

From a technical standpoint, the daily chart is turning constructive. The index is sustaining above its 20-DMA at 24,747 and 40-DEMA at 24,839, with the daily RSI rising to 55 and the MACD narrowing its negative spread at –83, reflecting fading bearish pressure. On the hourly timeframe, the 20-HMA at 24,849 remains above the 40-HMA at 24,765, confirming a bullish crossover. The RSI at 65 and a strongly positive MACD at +95 further reinforce the bullish intraday momentum.

The derivatives setup adds conviction to this view. Total PE OI stands at 14.70 crore vs CE OI of 13.23 crore, giving a bullish skew. Put writers added a massive 4.21 crore contracts, compared to only 1.24 crore addition on the call side, reflecting a strong build-up of support. Importantly, while 25,000 has acted as the key call writing zone historically, the highest fresh call addition has now shifted to 25,500, with max OI concentration at 25,100. This raises the possibility of a sellers’ trap: once Nifty sustains above 25,100, call writers could be forced to cover their positions, triggering a strong short-covering rally towards 25,300–25,500.

With global cues stable—US markets consolidating, crude steady around $65–66, and the rupee holding near 87.6—the domestic technicals and positioning remain the dominant drivers.

In summary, the close above 25,000 is a crucial milestone. If the index crosses and sustains above 25,100, the stage is set for a potential short-covering move that could accelerate the rally towards 25,500. On the downside, 24,850–24,765 remains the critical support zone, below which momentum would weaken.

Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.

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 guarantee 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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