Stock Market Weekly Forecast (Aug 18–22): Nifty Eyes 25,000, Sensex Support Strong at 80,000
Indian stock market weekly forecast for Aug 18–22: Nifty may rally towards 25,000 if key support at 24,337 holds. Global cues, FIIs flows, and GST reforms to guide trends.
The Indian stock market ended its six-week losing streak with cautious optimism. The Nifty and Sensex gained around 1% last week, supported by oversold conditions and positive global trends. However, persistent foreign institutional investor (FII) outflows kept overall momentum in check. As we move into the week of August 18–22, traders are watching critical support and resistance levels to assess whether the market can break out towards the 25,000 mark on the Nifty.
Market Performance Recap
- Sensex: 80,597.66 (+0.07%)
- Nifty 50: 24,631.30 (+0.05%)
- FII Activity: Net outflow of ₹10,000 crore in the cash market
- DII Activity: Net inflow of ₹19,000 crore
While FIIs continued to withdraw funds, domestic institutional investors (DIIs) stepped in strongly to support the market.
Key Global and Domestic Triggers
Several developments will influence the stock market trend this week:
- India’s Sovereign Rating Upgrade: S&P Global revised India’s rating from BBB- to BBB (stable outlook), boosting long-term investor confidence.
- GST Reforms: Announcements made by Prime Minister Narendra Modi during Independence Day are expected to provide a positive push to domestic businesses.
- Global Geopolitics: The upcoming Trump–Putin meeting in Alaska could have ripple effects on global trade sentiment.
- US Fed Minutes: Any hint of policy shifts may affect FII flows into emerging markets.
- Weather & Inflation: Favorable monsoon and record-low inflation add further support to domestic consumption.
Technical Outlook for Nifty 50 (Aug 18–22)
- Immediate Support: 24,337
- Key Resistance Levels: 24,660 and 24,850
- Breakout Zone: Above 24,750, Nifty could surge towards 25,000
If Nifty remains above 24,337, a bullish trend is likely to continue. However, a dip below this support could trigger renewed selling pressure towards 24,200.
Sensex Outlook
The Sensex has formed a strong base at 80,000, with bullish patterns visible on the weekly chart. Analysts expect that as long as global cues remain supportive, the index could move higher towards 81,500 in the near term.
IPO and Corporate Action Watch
This week, over 100 companies will announce corporate actions, including dividends and stock splits. Notable names include:
- JK Paper
- Natco Pharma
- Coal India
Additionally, five mainboard IPOs and one SME IPO are lined up, which could attract significant retail participation.
Expert Views
- Santosh Meena (Swastika Investmart): “Nifty has established a strong base at 24,350 and formed a bullish engulfing candlestick on the weekly chart.”
- Ajay Bagga (Market Analyst): “If geopolitical tensions ease, Indian equities could witness a relief rally. But investors should remain cautious as global noise often creates short-lived rallies.”
What Traders Should Watch
The market trend remains cautiously optimistic with an upside bias. Traders should monitor:
- Nifty’s support at 24,337 and breakout at 24,750.
- FII–DII activity balance.
- Global events such as the Trump–Putin meeting and US Fed minutes.
- Domestic factors like GST reforms and corporate earnings.
If momentum sustains, the Nifty could test the 25,000 milestone, while the Sensex may continue to trade comfortably above 80,000.
