Stock Market Prediction for Tomorrow, 24 August 2026: Sensex, Nifty Outlook for Monday

The Indian stock market is poised for a crucial trading session on Monday, 24 August 2026, as investors weigh global cues and domestic macroeconomic data. After a volatile week, the benchmark indices—Sensex and Nifty—are expected to open with a cautious tone, with analysts suggesting that the market may remain range-bound in the near term. According to market observers, the key resistance for Nifty is placed at 24,850, while support is seen at 24,500. A breakout above the resistance could trigger a fresh rally, while a fall below support might lead to further correction.

Technical indicators point to a mixed sentiment. The Relative Strength Index (RSI) on the daily chart is hovering near 62, indicating that the market is neither overbought nor oversold. Meanwhile, the Moving Average Convergence Divergence (MACD) has shown a bullish crossover, suggesting upward momentum in the short term. However, the volatility index, India VIX, has risen by 3.5% to 14.2, reflecting increased nervousness among traders. Analysts advise investors to keep a close watch on the global markets, especially the US Federal Reserve's policy stance, which could influence foreign institutional investor (FII) flows.

In the previous session, Foreign Institutional Investors (FIIs) were net sellers in the cash market, offloading equities worth ₹1,250 crore, while Domestic Institutional Investors (DIIs) bought shares worth ₹980 crore. This divergence in activity suggests that domestic players are providing support, but sustained FII selling could cap gains. On the sectoral front, banking and IT stocks are likely to be in focus, with the Nifty Bank index expected to test its immediate resistance at 52,300. The auto sector may see some profit booking after recent gains, while pharmaceutical stocks could attract buying interest on the back of robust earnings expectations.

“The market is at a crossroads. While the overall trend remains positive, the near-term outlook is clouded by global uncertainties and profit booking at higher levels. Investors should adopt a stock-specific approach and avoid aggressive positions until clarity emerges,” said a senior technical analyst at a leading brokerage.

Adding to the complexity, crude oil prices have edged higher, with Brent crude trading around $84 per barrel, which could impact India's fiscal deficit and inflation. The rupee, meanwhile, remained stable at 83.75 against the US dollar, but any sharp depreciation could trigger capital outflows. On the data front, the upcoming release of the US GDP figures and the Jackson Hole symposium will be closely monitored by market participants for cues on interest rate trajectory.

Given the mixed signals, market experts suggest that traders should focus on risk management. For positional traders, a buy-on-dips strategy could work if Nifty holds above 24,500, while a close below this level would warrant caution. For the day, the market is likely to open flat to slightly positive, with a bias towards consolidation. However, any surprise in global cues or domestic news could alter the trajectory.

In conclusion, the outlook for Monday, 24 August 2026, remains cautiously optimistic, with key levels acting as a guide. Investors are advised to monitor global developments and adopt a disciplined approach. For more detailed insights and trading strategies, visit our website.

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