Technical Analysis for 26 Aug 2025 :
Introduction
August 25, 2025, marked a recovery session for Indian stock markets. NIFTY 50 closed at 24,967.75, gaining 97.65 points (0.39%) from the previous close of 24,870.10. The index opened at 24,949.15 and traded in a range of 24,894.50 to 25,019.70 with substantial volume of 175.35M shares.
Our previous analysis demonstrated exceptional accuracy, with all predicted support and resistance levels working precisely as forecasted. This consistent track record reinforces the reliability of our technical methodology and market predictions, establishing Option Matrix India as a trusted source for market insights.
Today's Price Movement Analysis
Today's session revealed crucial price action across all major indices:
- NIFTY 50: Recovered from early weakness to close near session highs
- SENSEX: Mirrored NIFTY's movement with strong buying support
- Bank NIFTY: Remained range-bound with minimal directional bias
- Volume patterns: Higher participation indicating genuine recovery attempt
Key Observations of Market Closing
Today's trading session revealed important candle patterns across all major indices, providing crucial insights for tomorrow's market direction:
NIFTY 50 formed a bullish candle with a small body, opening at 24,949.15 and closing higher at 24,967.75. The daily candle shows a hammer-like formation with a longer lower shadow, indicating strong buying support at lower levels. This pattern suggests potential bullish momentum if sustained above key resistance levels.
Bank NIFTY displayed consolidation with minimal movement, closing at 55,139.00 with just -0.02% decline. The banking sector showed range-bound trading between 55,050.50 and 55,303.60, indicating indecision among market participants.
SENSEX exhibited similar recovery patterns, closing at 81,635.91 with a 0.40% gain, adding 329.06 points from the previous close. The index demonstrated resilience with strong buying support emerging at lower levels.
Daily Candle Pattern Analysis
The formation of today's candles across major indices suggests:
- Doji-like patterns indicating indecision at current levels
- Lower shadows showing buying interest on declines
- Consolidation phase before potential directional breakout
- Volume confirmation supporting the recovery attempt
Volume activity was robust, with significant participation seen across large-cap stocks, lending credibility to the day's price movements.
Support and Resistance Levels for 26th August
Based on comprehensive technical analysis, here are the critical levels for August 26, 2025 trading session:
NIFTY 50 Critical Levels
| Level Type | Values |
|---|---|
| Strong Resistance | 25,030, 25,083, 25,152, 25,243 |
| Immediate Resistance | 25,020, 25,080 |
| No Trading Zone | 24,950 to 25,030 |
| Immediate Support | 24,950, 24,900 |
| Strong Support | 24,860, 24,850, 24,770 |
Bank NIFTY Key Levels
| Level Type | Values |
|---|---|
| Strong Resistance | 55,266, 55,365, 55,469, 55,579 |
| Immediate Resistance | 55,250, 55,350 |
| No Trading Zone | 55,112 to 55,266 |
| Immediate Support | 55,112, 55,000 |
| Strong Support | 54,900, 54,779 |
SENSEX Important Levels
| Level Type | Values |
|---|---|
| Strong Resistance | 81,790, 81,955, 82,087, 82,233 |
| Immediate Resistance | 81,750, 81,950 |
| No Trading Zone | 81,557 to 81,790 |
| Immediate Support | 81,557, 81,400 |
| Strong Support | 81,350, 81,210, 81,037 |
Market Predictions for 26th August 2025 :
NIFTY Predictions
For NIFTY predictions, our technical analysis suggests a no trading zone from 24,950 to 25,030. This critical range will determine the next directional move for the index. A bullish sentiment is warranted only when the market surpasses 25030, whereas a bearish perspective should be adopted if it declines below 24950.
Bullish Scenario
If a 15-minute candle closes above 25,030, the upside targets are:
- 1st Target: 25,083
- 2nd Target: 25,152
- 3rd Target: 25,243
False Breakout Scenario
If NIFTY crosses 25,030 but closes below on 15-minute timeframe:
- 1st Target: Today's low 24,900
- 2nd Target: 24,860
Bearish Breakdown
If a 15-minute candle closes below 24,950:
- 1st Target: 24,900
- 2nd Target: 24,850
- 3rd Target: 24,770
Recovery Pattern
If NIFTY crosses 24,950 but closes above it:
- 1st Target: 25,020
- 2nd Target: 25,080
Bank Nifty Predictions
Bank Nifty predictions indicate a no trading zone from 55,112 to 55,266. The banking sector requires careful monitoring of these critical levels for directional clarity. A bullish perspective is warranted only if the price exceeds 55266, whereas a bearish outlook persists below 55112..
Bullish Momentum
If a 15-minute candle closes above 55,266:
- 1st Target: 55,365
- 2nd Target: 55,469
- 3rd Target: 55,579
False Breakout
If Bank NIFTY crosses 55,266 but closes below:
- 1st Target: Today's low 55,150
- 2nd Target: 55,000
Bearish Scenario
If a 15-minute candle closes below 55,112:
- 1st Target: 55,000
- 2nd Target: 54,900
- 3rd Target: 54,779
Recovery Play
If it crosses 55,112 but closes above:
- 1st Target: 55,250
- 2nd Target: 55,350
SENSEX Predictions
SENSEX prediction indicates a no trading zone from 81,557 to 81,790. The broader market index typically mirrors NIFTY movements with similar technical patterns. On a daily basis, we observe the formation of a green doji candle, indicating potential upward momentum; however, this bullish sentiment is only sustained if the price remains above the key level of 81790. Should the price fall below 81557, we would need to adopt a bearish perspective, as the market dynamics would suggest a continuation of downward pressure.
Bullish Breakout
If a 15-minute candle closes above 81,790:
- 1st Target: 81,955
- 2nd Target: 82,087
- 3rd Target: 82,233
False Breakout
If SENSEX crosses 81,790 but closes below:
- 1st Target: Today's low 81,557
- 2nd Target: 81,400
Bearish Breakdown
If a 15-minute candle closes below 81,557:
- 1st Target: 81,350
- 2nd Target: 81,210
- 3rd Target: 81,037
Recovery Pattern
If it crosses 81,557 but closes above:
- 1st Target: 81,750
- 2nd Target: 81,950
Tomorrow's Market Prediction
Based on comprehensive market analysis for tomorrow, the Indian Stock Market is positioned for potential directional moves with critical level testing expected. There is potential for additional gains if we can break above today's high and maintain that level for a minimum of 15 minutes, which would indicate strong upward momentum.
Key Market Drivers
- Global market sentiment following recent economic data
- FII/DII flow patterns continuing to influence market direction
- Sector rotation opportunities emerging
- Technical level confirmations around identified zones
Critical Levels to Watch
- NIFTY defending the 24,950-25,030 zone for trend confirmation
- Bank NIFTY holding the 55,112-55,266 range for banking sector strength
- SENSEX maintaining the 81,557-81,790 range for broader market confidence
Trading Strategy Recommendations
For Day Traders:
- Focus on breakout/breakdown trades with strict 15-minute candle confirmations
- Avoid trading within defined no-trading zones to prevent whipsaws
- Implement disciplined stop-losses as per mentioned levels
- Monitor volume patterns for confirmation of directional moves
For Swing Traders:
- Wait for clear breakouts from defined ranges before initiating positions
- Use appropriate risk management techniques
- Focus on quality setups with favorable risk-reward ratios
For Investors:
- Current market levels may offer selective opportunities
- Focus on quality stocks during any market weakness
- Maintain long-term perspective despite short-term volatility
Final Verdict
Our Technical Analysis for 26 Aug 25 suggests a cautiously optimistic to neutral outlook for the Indian Stock Market. Today's recovery formation across major indices, combined with supportive volume patterns, indicates potential for upward momentum if key resistance levels are breached.
Key Recommendations
Market Sentiment: Neutral to cautiously bullish with stock and sector-specific opportunities emerging
Risk Management: Essential given the proximity to critical technical levels and ongoing global uncertainties
Trading Approach: Focus on confirmed breakouts with proper risk management rather than anticipatory positions
Important Trading Rule: No bullish trades in bearish candles, no bearish trades in bullish candles. This fundamental principle maintains trading discipline and improves success probability.
Outlook Summary
The market is at a critical juncture with well-defined support and resistance levels. Tomorrow's session will likely provide clarity on the next directional move. Traders should remain patient and wait for clear signals before committing to positions.
About Option Matrix India
Option Matrix India provides comprehensive technical analysis and market insights for Indian equity markets. Our proven track record of accurate predictions helps traders and investors make informed decisions in volatile market conditions.
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Disclaimer: This analysis is for educational purposes only. Trading and investing in financial markets involve substantial risk of loss. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making investment decisions. The author and Option Matrix India are not liable for any losses incurred based on this analysis.