Nifty Ends Week on a Positive Note; Key Dates to Watch for Potential Reversals
The Indian market ended the week on a positive note, with the Nifty50 closing with gains of about 1% for the week ended August 22, marking the second consecutive week of advances. This performance is a testament to the resilience of the market, despite ongoing global economic uncertainties.
However, foreign institutional investors (FIIs) continued to remain net sellers. Data up to August 23 shows that FIIs sold equities worth Rs 25,564 crore this month, taking the total selling in 2025 so far (till August 23) to Rs 1,57,440 crore. This trend of selling by FIIs has been a significant factor influencing market dynamics.
Last week’s forecast highlighted August 21–22 as critical dates for a potential market trend shift. The call played out perfectly: the index made a swing high on August 21, and a sharp reversal unfolded on August 22, validating the time–price confluence setup. This precision in market timing is crucial for traders and investors to make informed decisions.
The week also demonstrated the effectiveness of intraday time clusters, which helped capture market swings with near-perfect accuracy:
- Aug 18 (Mon): Day high near 9:45 AM; day low exactly at 12:20 PM - Aug 19 (Tue): Day low near 9:45 AM; swing low at 1:45 PM - Aug 20 (Wed): Minor reversal at 1:30 PM - Aug 21 (Thu): Swing high near 10:45 AM; day high exactly at 2:30 PM - Aug 22 (Fri): Swing high formed at 1:35 PM
Such timing precision once again provided traders with strong intraday edges, allowing them to capitalize on short-term market movements.
Going forward, the following zones will act as decision points for the index:
- Support: 24,850 / 24,806 / 24,670 / 24,538 / 24,480 / 24,350 / 24,140 / 23,875 - Resistance: 24,978 / 25,083 / 25,145 / 25,322 / 25,434 / 25,566
Price reactions around these levels will guide whether the index sustains its uptrend or sees fresh reversals. Traders should closely monitor these levels to make informed trading decisions.
High-probability intraday time clusters for the upcoming week (Aug 25–29) are as follows:
- Mon, Aug 25: 9:20 AM, 12:25 PM, 1:35 PM, 2:40 PM - Tue, Aug 26: 10:20 AM, 11:30 AM, 1:30 PM - Thu, Aug 28: 9:50 AM, 11:25 AM, 1:25 PM, 2:30 PM - Fri, Aug 29: 11:25 AM, 1:40 PM (Note: Aug 27 is a trading holiday.)
Traders should mark Aug 26 and Aug 28 as high-probability dates for potential reversals. With Aug 27 being a holiday, caution is advised while carrying positions across sessions. These dates and time clusters can provide valuable insights for intraday traders looking to capture short-term market movements.
In summary, while the Nifty50 has shown positive momentum, traders and investors should remain vigilant and monitor key support and resistance levels, as well as high-probability intraday time clusters, to make the most of the market's movements.
(The author, Harshubh Mahesh Shah, is Director at Wealthview Analytics Pvt Ltd. SEBI Registration – INH000009676)
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of the Economic Times)
