Nifty & Bank Nifty Strategy for 20 Aug 25

Nifty & Bank Nifty Strategy for 20 Aug 25

Nifty & Bank Nifty Post-Market Analysis – 19 August 2025

Key Takeaways

  • Nifty closed near 24,990 after a sharp gap-up and sideways movement.
  • Bank Nifty held above 55,800 with a recovery from intraday lows.
  • Volatility remained subdued post-gap, favoring range-bound trading.
  • Global cues stayed positive amid declining US bond yields.

Price Action Breakdown

Nifty 50

Nifty opened with a substantial gap-up, jumping directly near the 25,000 level. The day began on a bullish note as global cues supported sentiment. However, after hitting a high around 25,040, the index consolidated in a tight range, forming a sideways channel. Despite intraday dips, it found support at 24,920 multiple times. Closing at 24,989.70, Nifty showed strength but lacked momentum for a breakout.

Bank Nifty

Bank Nifty mirrored Nifty’s gap-up behavior, opening above 56,000 but faced immediate profit booking. It dipped near 55,600 before bouncing back. The recovery was broad-based, with private banks leading the charge. Bank Nifty closed at 55,849.80, maintaining higher lows on the 5-min chart and showing a potential for further upside.

Global Market and Macro Updates

  • Asian markets ended mixed, while European indices traded flat.
  • US bond yields eased, reducing pressure on equity valuations.
  • Crude oil prices remained range-bound near $83/barrel.
  • India’s WPI inflation fell to 2.4%, providing room for RBI to stay dovish.

For more updates, check Reuters Markets and Investing.com News.

Technical Indicator Table

IndexRSI (14)India VIXPCR (OI)
Nifty 5064.7 (Neutral-Bullish)11.95 (Low Volatility)1.12 (Bullish Bias)
Bank Nifty60.4 (Neutral)0.95 (Slightly Bearish)

Sector Performance Table

SectorPerformanceTrend
IT+1.2%Bullish
Banking+0.5%Neutral-Bullish
Auto-0.4%Bearish
FMCGFlatNeutral

Trading Strategy for 20/08/25 (Intraday + Swing)

Intraday Strategy

  • Watch 25,040 on Nifty. A breakout above may lead to 25,120.
  • Below 24,920, expect mild selling pressure up to 24,850.
  • Bank Nifty faces resistance near 56,100. Breakout targets 56,400.
  • Below 55,600, weakness can extend to 55,300 levels.

Swing Strategy

  • Hold Nifty longs with SL below 24,850 on a daily closing basis.
  • Initiate fresh longs in Bank Nifty above 56,100 only if supported by volume.
  • Risk-reward favors bulls, but wait for confirmation before position sizing.

Check our Free Buy-Sell Chart and TradingView Indicator for live setups.

Key Levels Table

IndexSupportResistanceSwing Bias
Nifty 5024,85025,120Bullish
Bank Nifty55,60056,400Cautiously Bullish

Final Thoughts

The market showed stability after a strong opening. Lack of volume kept indices range-bound. Yet, the bias remains upward unless key supports break. Traders should monitor global events and economic data. Stay cautious near resistance zones.

Disclaimer

This article is for educational purposes only. Trading and investing in stock markets involve financial risk. Please consult your financial advisor before making any decisions.

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