The Indian stock market opened negative but absorbed the initial hour's weakness and improved sentiment till midday, followed by some range-bound move. The Nifty index witnessed a strong bout of buying in the last hour, crossed the 24,250 zone, and formed a bullish candle on the daily frame, closing near its higher band. The domestic equity indices ended lower in the previous session, with the benchmark Nifty 50 closing 32.95 points, or 0.14%, lower at 24,219.05, while the Sensex dropped 171.72 points, or 0.22%, to close at 77,369.11. The Nifty 50 had failed to sustain above 24,300 zones in the first hour and moved lower towards 24,150 in the second half, forming a bearish candle on the daily frame which indicates pressure in the short term.
Chandan Taparia, Head Derivatives & Technicals, Wealth Management at Motilal Oswal Financial Services Ltd, provided insights on the Nifty options front. The maximum call OI is at 24,300 then 24,200 strike while maximum put OI is at 24,200 then 24,000 strike. Call writing is seen at 24,300 then 24,200 strike while put writing is seen at 24,150 then 24,100 strike. Option data suggests a broader trading range between 23,800 to 24,800 zones while an immediate range between 24,000 to 24,500 levels. As per Taparia, the index opened on a flattish note and remained in a sideways to negative trend throughout the session as it failed to sustain above 24,300 zones in the first hour and moved lower towards 24,150 in the second half.
According to Taparia's analysis, the Nifty 50 index opened on a flattish note and remained in a sideways to negative trend throughout the session as it failed to sustain above 24,300 zones in the first hour and moved lower towards 24,150 in the second half where it found some support. The index formed a bearish candle on the daily frame which indicates pressure in the short term. Now it has to cross and hold above 24,250 zones for an up move towards 24,450 then 24,550 zones while support can be seen at 24,200 then 24,100 zones. The index had reclaimed the 50 EMA support amidst sideways to positive trend and broke the thirteen-day streaks of lower highs in previous sessions. In the latest session, it formed a bullish candle on the daily frame and closed near its higher band, showing strong buying interest.
The Bank Nifty index opened marginally lower but a quick recovery was seen towards 57,650 zones in the initial hour of the session. However, it failed to hold at higher levels and drifted towards 57,250 levels but remained quite choppy in the latter part of the session. The index formed a small bullish candle on the daily scale with longer upper and lower shadows, as buying is visible at lower levels, but momentum is missing at higher zones. Now till it holds above 57,500 zone for a bounce towards 57,750 then 58,000 levels, while a hold below the same could see some weakness towards 57,250 then 57,000 zones.
Chandan Taparia has recommended three stocks for trading on August 25, 2026. Divi's Laboratories is recommended with a 'Buy' call at ₹8,744 with stop loss at ₹8,480 and target price of ₹9,250. The stock remains in a strong uptrend and is clearly outperforming the broader market with a fresh all-time-high breakout above ₹8,600 zones, having broken out of the 8–10 session range with noticeable volumes. TVS Motors is suggested with a 'Buy' call at ₹4,464 with stop loss at ₹4,330 and target price of ₹4,730. After a sharp up move, the stock consolidated in a tight range for the last 7–8 sessions and has now broken out with a strong bullish candle, with RSI nearing a bullish crossover while sustained trade above ₹4,480 can accelerate the next leg of the up move. Dixon Technologies is recommended with a 'Buy' call at ₹14,990 with stop loss at ₹14,550 and target price of ₹15,850. The stock has retested its pole and flag breakout around the ₹14,400 zone and witnessed strong buying, surpassing the highs of the last three sessions, with the 20 DEMA continuing to act as strong support.
