Amol Athawale is VP-Technical Research, Kotak Securities
Last Update: 16 August 2026, 7.00 AM
Stock Market Outlook: Key Nifty, Sensex and Bank Nifty Levels
Indian benchmark indices witnessed profit booking at higher levels during the previous week. The Nifty declined 0.83% on a weekly basis, while the Sensex lost 490 points. Among sectoral indices, Media emerged as the best performer with gains of over 2%, whereas the Metal index was the biggest laggard, declining 1.8%.
What Is the Outlook for Nifty and Sensex?
Technically, the Nifty continues to find support near its 20-day Simple Moving Average (SMA), placed around 24,250. The corresponding support level for the Sensex is near 77,600.
The short-term market outlook remains weak and non-directional. However, if the Nifty sustains above 24,250 and the Sensex holds above 77,600, a sharp technical rebound may emerge.
In such a recovery:
- Nifty could initially rise towards 24,500 and subsequently 24,700.
- Sensex could move towards 78,400, followed by 79,000.
What Happens If Nifty Falls Below 24,250?
A sustained break below 24,250 on the Nifty or 77,600 on the Sensex may intensify selling pressure.
The downside targets would then be:
| Index | Crucial Support | Downside Zone | Upside Targets |
|---|---|---|---|
| Nifty | 24,250 | 24,000–23,950 | 24,500–24,700 |
| Sensex | 77,600 | 76,800–76,600 | 78,400–79,000 |
Therefore, 24,250 for Nifty and 77,600 for Sensex will remain the key trend-deciding levels.
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Bank Nifty Outlook and Important Levels
For Bank Nifty, the 50-day SMA near 57,300 and the psychological level of 57,000 are expected to act as crucial support zones.
If Bank Nifty holds above 57,000–57,300, it may recover towards 58,000 and subsequently 58,500. However, a decisive fall below 57,000 could weaken the index further and increase the possibility of a decline towards 56,300–56,000.
| Bank Nifty Levels | Outlook |
| Above 57,300 | Recovery may strengthen |
| 58,000–58,500 | Potential upside zone |
| Below 57,000 | Fresh weakness likely |
| 56,300–56,000 | Downside target zone |
What Should Traders Do Now?
The market currently lacks a clear directional trend. Therefore, traders should follow a strictly level-based strategy instead of taking aggressive positions.
The preferred approach is to consider bullish trades only if the Nifty sustains above 24,250 and Bank Nifty holds above 57,300. If these support levels break decisively, traders should remain cautious, avoid premature buying and consider selling on rallies with appropriate stop-losses.
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Amol Athawale is the Vice President – Technical Research at Kotak Securities Ltd., known for his deep expertise in technical chart analysis and derivatives strategy.
He has over 18 years of experience in equity markets, specializing in identifying short-term trading opportunities using trend and momentum indicators.
His market commentaries and trading insights are widely followed by investors and media houses for their accuracy and clarity.
Amol is a regular contributor to financial publications and TV channels, offering actionable views on Nifty, Bank Nifty, and sectoral trends.
He focuses on support–resistance mapping, candlestick formations, and positional setups for traders and short-term investors.
His balanced approach — combining technical precision with market psychology — makes him one of the most respected voices in Indian market analysis.