Tuesday’s trading session reflected a broad-based bearish sentiment across Indian equity markets, following a short-lived recovery seen on Monday. The day began on a weak note and continued to slide, with benchmark indices closing in the red. Persistent concerns over potential U.S. trade actions, particularly the proposed imposition of steep tariffs on Indian goods, weighed heavily on investor confidence. As a result, key indices ended the day below crucial short-term moving averages, indicating a loss of near-term momentum.
Market breadth remained negative, with most sectoral indices ending lower. However, a few pockets of strength emerged, notably in the FMCG and MNC segments, which saw buying interest amid the broader decline. Defensive stocks offered some support, while more volatile segments like realty and small-cap stocks bore the brunt of the sell-off. The cautious mood was not limited to domestic markets, as Asian indices also displayed weakness, and U.S. futures pointed to a subdued opening, reflecting broader global uncertainty.
In this overview, we will analyze the key technical levels and trend directions for Nifty and BSE Sensex to monitor in the upcoming trading sessions. All the charts mentioned below are based on the 5-minute timeframe.
NIFTY 50 Chart & Price Action Analysis
(In this analysis, we have used 20/50/100/200 EMAs, where 20 EMA (Red), 50 EMA (Orange), 100 EMA (Light Blue), 200 EMA (Dark Blue)).
The Nifty 50 Index opened lower on Tuesday at 24,899.5, marking a decline of 68.25 points from Monday’s close of 24,967.75. The negative sentiment was driven by growing concerns over potential U.S. trade measures, after the United States issued a draft notice proposing tariffs of up to 50% on Indian goods, which will take effect on August 27th. The Nifty Index, which began the morning session on a bearish note, subsequently dragged down below the 24,850 mark and traded below its opening level around 24,800. During the morning session, the index was below the EMAs of 20/50/100/200 in the 15-minute time frame and was trading between the range of 24,750 and 24,850. In the afternoon session, the index further pulled down from the 24,850 level to the 24,700 level in the afternoon; the Index held below the 24,900 level, trading in red. Overall, the Tuesday session saw the Nifty 50 in a bearish state. During the afternoon session, the Nifty 50 closed below all four EMAs of 20/50/100/200 in the 15-minute time frame.
Nifty’s immediate resistance levels are R1 (24,843), R2 (25,020), and R3 (25,142), while immediate support levels are S1 (24,689), S2 (24,537), and S3 (24,406).
The Nifty index had reached a day’s high at 24,919.65, traded in red below the 24,900 level, and saw a day’s low at 24,689.6. Finally, it had closed at 24,712.05, losing 255.7 points, or 1.02%. The Relative Strength Index (RSI) stood at 45.92 (below the overbought zone of 70) in the daily time frame, and the Nifty 50 closed above the 100 & 200 EMAs, but slipped below the 20 & 50 EMAs in the daily time frame.
Bank Nifty Chart & Price Action Analysis
(In this analysis, we have used 20/50/100/200 EMAs, where 20 EMA (Red), 50 EMA (Orange), 100 EMA (Light Blue), 200 EMA (Dark Blue)).
The Bank Nifty Index also started the session on a negative note at 54,999.05 on Tuesday, down by 140.25 points from Monday’s closing of 55,139.3. The index began the morning session on a negative note and dragged below the 55,000 mark, and traded below its opening level around the range of 54,600. The index was below all four EMAs of 20/50/100/200 during the 15-minute time frame and was trading between 55,550 and 55,650 levels during the morning session. The Bank Nifty index was further unsteady during the afternoon session, plunging to the 55,400 mark and trading in the red. During the afternoon session, Bank Nifty closed below all four EMAs of 20/50/100/200 during the 15-minute time frame.
Bank Nifty immediate resistance levels are R1 (54,965), R2 (55,662), and R3 (56,147), while immediate support levels are S1 (54,400), S2 (53,935), and S3 (53,490).
The Bank Nifty index had peaked at 55,068.90 and made a day’s low at 54,396.1. Finally, it had closed in red at 54,450.45, breaking below the key 55,000 level, losing 688.85 points or 1.25%. The Relative Strength Index (RSI) stood at 33.43 (well below the overbought zone of 70 but near the oversold zone of 30 in the daily time frame), and Bank Nifty closed below the 20/50/100 EMAs but remained above the 200 EMA in the daily time frame.
BSE Sensex Chart & Price Action Analysis
(In this analysis, we have used 20/50/100/200 EMAs, where 20 EMA (Red), 50 EMA (Orange), 100 EMA (Light Blue), 200 EMA (Dark Blue)).
The BSE Sensex Index also had a weaker start at 81,377.39 on Tuesday, down by 258.52 points from Monday’s closing of 81,635.9. The Index was consolidating in the range of 81,100 during the morning session after beginning the day on a bearish trend. The index was below the 20/50/100/200 EMAs in the 15-minute time frame and was trading between 81,000 and 81,150 in the morning session. The Sensex Index further fell downwards below 81,000 in the afternoon session, maintaining its overall negative trend and was trading below all four EMAs of the 20/50/100/200 EMA in the 15-minute time frame.
BSE Sensex immediate resistance levels are R1 (81,388), R2 (81,976), and R3 (82,555), while immediate support levels are S1 (80,515), S2 (79,996), and S3 (79,364).
The BSE Sensex index had peaked at 81,450.28 and made a day’s low at 80,685.98. Finally, it had closed at 80,786.5 in the red, losing 849.37 points, or 1.04%. The Relative Strength Index (RSI) stood at 44.78 (below the overbought zone of 70) in the daily time frame, and the BSE Sensex closed below the 20/50/100 EMAs but remained above the 200 EMA in the daily time frame.
Market Recap on 26th of August 2025
Tuesday’s trading session began on a bearish note, with broader market indices ending in the red after a brief recovery on Monday. The Nifty 50 opened weak at 24,899.50, down -68.25 points from the previous close of 24,967.75, and slipped further to close at 24,712.0. This marked a decline of -255.7 points, or -1.02%, with the index finishing below the 20 and 50-day EMAs but still holding above the 100 and 200-day EMAs on the daily chart. The BSE Sensex mirrored the downward trend, opening at 81,377.39 and closing at 80,786.54, registering a loss of -849.37 points, or -1.04%. Momentum indicators also reflected weakening sentiment, with the Nifty 50’s Relative Strength Index (RSI) at 45.92 and the Sensex RSI at 44.78, both comfortably below the overbought threshold of 70. The Bank Nifty Index was not spared either, closing at 54,450.45 after shedding 688.85 points, or 1.25%. The prevailing negative sentiment across markets was largely attributed to escalating concerns over U.S. trade policy, following the US draft proposal to impose tariffs of up to 50% on Indian goods, set to take effect on August 27th.
The majority of the sectoral indices ended the day in the red, except for a few gainers. The Nifty FMCG Index was the top gainer, closing at 56,187, up by 505.35 points, or 0.91%. Britannia Industries Ltd led the gains with a 3.9% increase, followed by other FMCG stocks, including Hindustan Unilever Ltd, which gained 2.3%, and ITC Ltd, which rose by 1.0%. The Nifty MNC Index followed the gains, closing at 29,518.2, up by 100 points, or 0.34%. Britannia Industries Ltd, Hindustan Unilever Ltd, Linde India Ltd, and Maruti Suzuki India Ltd were among the major gainers.
Among the major losers, the Nifty Realty index plunged the most on Tuesday’s trading session. The index decreased by -20.50 points, or -2.24%, closing at 895.95. Godrej Properties Ltd was the major loser, dropping 3%; Brigade Enterprises Ltd declined 2.5%, and Prestige Estates Projects Ltd fell 2.4%. Another major laggard was the Nifty Smallcap 50 Index, which closed at 8,428.7, losing -183.95 points, or -2.14%. Major losers include KFin Technologies Ltd, Firstsource Solutions, and Piramal Enterprises, whose shares declined by up to 5%.
Asian markets were broadly negative on Tuesday, with Hong Kong’s Hang Seng Index ending at 25,524.92, losing -304.99 points, or -1.18%. The Shanghai Composite Index also closed in red at 3,868.38, losing -15.18 points, or -0.39%. South Korea’s KOSPI Index closed at 3,179.36, up -30.5 points, or 0.95%. Japan’s Nikkei 225 Index also closed on a negative note at 42,394.4, down -15.18 points, or -0.39%. The US Dow Jones Futures were trading at 45,292, down -59 points, or -0.13%, as of 4:57 p.m. IST.
India VIX
The India VIX increased 0.435 points or 3.7%, from 11.76 to 12.19 during Tuesday’s session. An increase in the India VIX indicates a heightened fear and uncertainty in the Indian stock market, signaling greater price fluctuations.
Trade Setup Summary:
The Nifty 50 opened on a negative note at 24,899.5 on Tuesday and ended the day in red below the 24,800 level at 24,712.05. A break below 24,689 could trigger further selling towards 24,537, while a break above 24,843 could trigger bullishness towards 25,020.
The Bank Nifty also started the session on a weaker note at 54,999.05 and ended the session at 54,450.45 in the red, below the 54,500 level. A break below 54,400 could trigger further selling towards 53,935, while a break above 54,965 could trigger bullishness towards 55,662.
The BSE Sensex opened in the red at 81,377.39 on Tuesday and ended at 80,786.54, dropping below the 81,000 level. A break below 80,515.07 could trigger further selling towards 79,996, while breaking above the resistance level of 81,387.54 could lead towards the 81,976.42 level.
Given the ongoing volatility and mixed sentiments, it’s advisable to avoid aggressive positions and wait for clear directional moves above resistance or below support. Traders should consider these key support and resistance levels when entering long or short positions following the price break from these critical levels. Additionally, traders can combine moving averages to identify more accurate entry and exit points.
