Market Overview

Indian benchmarks ended the week on a cautious note, with the Sensex and Nifty each closing largely flat on Friday but posting their second consecutive weekly loss. The Sensex slipped nearly 0.60% to close at 77,540.83, while the Nifty fell around 0.47% to 24,252, according to multiple financial reports. During the week, the Nifty recorded its longest losing streak in nearly 11 months, with seven straight sessions of decline, losing about 2.1% before a partial recovery.

Friday's Session

On Friday, the Sensex ended just 3 points higher at 77,540.83, and the Nifty gained 20 points, or 0.08%, to 24,252. The broader market showed resilience, with the Nifty Smallcap 250 advancing 0.41% and the Nifty Midcap 150 rising 0.08%. Earlier in the session, the Sensex opened gap-up by 163 points, touching a high of 77,725.67 and a low of 77,445.86.

Global Cues

GIFT Nifty futures on the NSE International Exchange were 74 points, or 0.30%, higher at 24,360, hinting at a positive start for the domestic market on Monday. Asian markets were mixed in early trading, with the Nikkei 225 down 1.66%, the Hang Seng down 0.72%, and the Kospi down 0.58%, while the Shanghai SSE fell 0.39%. US stocks ended higher on Friday, with the S&P 500 gaining 0.4%, the Dow Jones rising 1% (517 points), and the Nasdaq Composite adding 0.4%. However, the Kospi, which had surged 11.5% the previous week, fell 0.9% for the week, and Taiwan's Weighted Index advanced 0.51%.

Oil, Dollar, and Gold

Crude prices remained elevated amid Middle East tensions. Brent slipped 1% to $93.43 a barrel, and US crude eased 1.1% to $86.14 ahead of Treasury Secretary Scott Bessent's scheduled press conference on Monday to outline sanctions on Iran. On Friday, Brent and WTI futures settled higher, with Brent up 0.65% to $94.39 and WTI up 0.26% to $87.06, marking weekly gains of 6.39% and 5.7%, respectively. The dollar was on the defensive after losing 0.8% last week at 96.832, while gold firmed 0.4% to $4,623 an ounce, having climbed 14% in August so far.

Analyst Views

Ponmudi R, CEO of Enrich Money, said Indian equity markets are set to begin the week on a cautious footing as persistent Middle East tensions and elevated crude oil prices temper risk appetite, with WTI trading near $86 a barrel. He highlighted three key themes: the Federal Reserve's policy trajectory, Nvidia's quarterly results, and the unresolved US-Iran conflict. Ajit Mishra of Religare Broking advised traders to avoid aggressively chasing prices and instead use meaningful declines to gradually accumulate fundamentally strong companies. He noted that banking, financial services, infrastructure, capital goods, defence, metals, and select healthcare stocks appear relatively better positioned.

Technical Levels

Technical analysts identified key levels for the coming sessions. Hitesh Tailor of Choice Broking placed support for the Sensex at 77,000-77,380 and resistance at 77,720-78,000. Ajit Mishra set Nifty support at 24,000-23,800 and resistance at 24,400-24,600. Ganesh Dongre of Anand Rathi noted that the Nifty had entered an overbought zone after its recent rally, with a crucial resistance at 24,500-24,600 coinciding with the 200-day EMA, and support at the long-term weekly trendline in the 23,700-23,800 zone. Bank Nifty closed at 57,761, with support at 57,000 and 56,000-56,300, and resistance at 58,000-58,500.

Stocks to Watch

Several companies were in focus:

  • Reliance Industries: Shareholders approved three resolutions on August 20, including material related-party transactions with subsidiaries.
  • NATCO Pharma: The US FDA issued a Form 483 with four observations following an inspection from August 17-21, 2026.
  • Power Grid Corporation: Emerged as the successful bidder under the TBCB process for a renewable energy transmission project in Gujarat.
  • JSW Infrastructure: Signed a share purchase agreement to acquire 100% of JSW Overseas.
  • Kaynes Technology: Entered a strategic MoU with BOSGAME to strengthen its presence in India.
  • Apollo Micro Systems: Received a SEBI communication regarding an open offer for Premier Explosives.
  • Federal Bank: Board cleared a proposal to raise up to $500 million via foreign currency bonds.
  • IREDA: Set record date of September 11, 2026, for a final dividend of ₹0.75 per share.
  • Diamond Power Infrastructure: Secured an order worth ₹52.86 crore from Aurionpro Solutions for a hyperscale data centre in Hyderabad.
  • Choksi Laboratories: Had a US FDA inspection with four observations.

FII/DII Flows

Provisional data from the NSE showed foreign portfolio investors were net sellers of ₹542.71 crore on Friday, while domestic institutional investors were net buyers of ₹2,124.14 crore. FPIs have infused ₹23,544 crore in Indian equities so far in August, according to reports.

Outlook

Market participants will watch the US Federal Reserve Chair Kevin Warsh's keynote speech at the Jackson Hole symposium on Friday, August 28, 2026, and the outcome of the US-Iran situation. Analysts expect continued volatility, with the near-term trend dependent on global cues, crude oil movements, and institutional flows.