Indian Stock Market Premarket Report (August 18, 2025): Volatility Cools, Optimism Returns

After six straight weeks of losses, the Indian stock market finally showed signs of recovery last week—offering traders a much-needed breather. As we step into the premarket session of August 18, 2025, investors are watching closely to see whether this rebound will sustain or fade.

This blog covers the latest market sentiment, index levels, sector trends, institutional activity, and key stocks to watch in today’s trading session.

Market Mood: Cautious Optimism

The Nifty 50 closed flat at 24,631.30, breaking its losing streak. Out of 50 stocks, 24 advanced while 26 declined—indicating that caution still lingers beneath the surface.

  • Top Gainers: IT majors Wipro (+2.14%) and Infosys (+1.48%), along with HDFC Life (+1.56%) and Asian Paints (+1.14%), supported the index.
  • Top Losers: Heavyweights like Reliance and ITC (down 0.64% each) and Tata Steel (-3.05%) dragged sentiment lower.

The takeaway? Buying interest has returned, but profit-booking in metals and select heavyweights is keeping traders on their toes.

Key Technical Levels to Watch

IndexSupport 1Support 2Resistance 1Resistance 2
Nifty24,48524,39524,77724,868
Sensex80,12079,82481,07681,371
Bank Nifty54,94754,70355,73755,981
Finnifty26,15826,04926,50926,618

📌 Nifty’s 21-DMA at 24,770 is the key hurdle. A breakout above this could spark a rally toward 25,000, while failure may trigger another round of consolidation.

  • RSI at 44 suggests improving momentum.
  • MACD remains below zero, signaling that traders should wait for a clearer trend reversal.

Bank Nifty & Financials: Entering Consolidation

  • Bank Nifty closed at 55,341.85 (+0.29%) with support from HDFC Bank, ICICI Bank, and SBI.
  • AU Bank stood out (+1.71%), while IDFC First Bank slipped (-1.62%).
  • The index seems locked between 55,000–55,500, hinting at a consolidation phase.

Meanwhile, the Nifty Financial Services index rose 0.36% to 26,333.45, led by a massive +9.86% jump in Muthoot Finance after strong Q1 FY26 earnings.

Sectoral Trends

  • IT & Financials: Momentum stays strong, supported by index heavyweights.
  • Metals: Pressure persists due to profit-booking.
  • Oil & Gas / FMCG: Range-bound on mixed global cues.
  • Midcaps & Smaller Banks: Traders should watch F&O ban restrictions before taking fresh positions.

Institutional Activity: DIIs Cushion FIIs

  • Foreign investors (FPIs): Net sellers of ₹1,927 crore.
  • Domestic investors (DIIs): Net buyers of ₹3,896 crore, offsetting FPI selling pressure.
  • India VIX: Rose 1.77% to 12.36—volatility has cooled, but market nerves remain.

Currency & Macro Cues

  • Rupee closed at 87.57 vs USD, weakening slightly due to importer demand.
  • Investors await fresh manufacturing and services data, which may impact near-term growth outlook.

Stocks Under F&O Ban (Today – Aug 18, 2025)

  • PNB Housing
  • PGEL
  • Titagarh

⚠️ If you trade derivatives, check the F&O ban list before initiating positions.

What Traders Should Watch Today

✅ Will Nifty break above 24,770 and trigger a run toward 25,000?
✅ Can IT and financials extend their strong showing?
✅ Will metals and FMCG continue to drag market momentum?
✅ Keep an eye on India VIX, as rising volatility could impact short-term trades.

Final Outlook

The Indian stock market enters the week with a cautiously optimistic tone. While volatility has eased, traders still await a clear confirmation of trend reversal.

👉 Stay nimble, track global cues, and respect key technical levels before placing trades.


⚠️ Disclaimer: This blog is for informational purposes only and should not be treated as financial advice. Please consult a SEBI-registered advisor before making investment decision.

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