Nifty & Bank Nifty Analysis for 22 Aug 2025: Strategy for 25 Aug
Key Takeaways
- Both Nifty and Bank Nifty witnessed sharp sell-offs on 22 August.
- Heavy resistance zones acted as strong rejection points.
- Bank Nifty closed near 55,150 while Nifty ended around 24,869.
- Bearish sentiment may spill over to the next session.
- Intraday traders should watch for gap-down setups and reversal levels.
Price Action Breakdown (Nifty & Bank Nifty)
Bank Nifty: The index saw a steep fall from 55,900+ levels after a morning spike. Multiple bearish candles confirmed supply pressure. The index broke down key intraday supports and closed near the day’s low at 55,150.25.
Nifty 50: Nifty mirrored Bank Nifty’s pattern with a gap-up opening but sharp selling in the second half. The index slipped from above 25,120 to end at 24,869.45.
Both indices have broken short-term supports which may open the door for more downside.
Global Market and Macro Updates
- Asian markets closed mixed amid concerns of global slowdown (Investing.com).
- US yields remained elevated, adding pressure to equities (Reuters).
- Crude oil remained firm, hovering near $84/barrel, weighing on inflation outlooks.
- INR slightly depreciated, closing at 83.20 vs USD.
Technical Indicator Table
| Indicator | Nifty 50 | Bank Nifty |
|---|---|---|
| RSI (14) | 38 (Bearish) | 36 (Bearish) |
| India VIX | 11.92 (Slight Uptick) | |
| PCR (Put/Call Ratio) | 0.86 | 0.82 |
Sector Performance Table
| Sector | Performance | Trend |
|---|---|---|
| Banking | -1.65% | Bearish |
| IT | +0.35% | Neutral |
| FMCG | -0.52% | Weak |
Trading Strategy for 25/08/25 (Intraday + Swing)
Intraday Strategy
- Expect a gap-down or flat opening based on global cues.
- Look for shorting opportunities if Bank Nifty trades below 55,000.
- Nifty has room to slide further till 24,800. Short on rise if price stays below 24,950.
- Use 5-minute chart for scalping. Tight stop-loss is advised.
Swing Strategy
- Swing traders can initiate short positions in Bank Nifty with a target of 54,650 and stop-loss at 55,800.
- In Nifty, any pullback to 25,000 can be used for short entries with 24,700 as target.
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Key Levels Table
| Index | Support | Resistance |
|---|---|---|
| Nifty 50 | 24,800 | 25,000 |
| Bank Nifty | 54,650 | 55,800 |
Final Thoughts
Markets turned decisively bearish on 22nd August. Both indices broke key levels, confirming short-term weakness. Intraday traders should stay nimble and react to volatility. Swing traders can hold bearish bias with defined risk. Keep an eye on global macro updates for any surprises.
Disclaimer
This analysis is for educational purposes only. Trading involves risk. Always consult with a certified financial advisor before investing.
