Stock Market Outlook August 19: Sensex, Nifty Poised for Further Gains Today; Will Nifty Sustain Above 25,000?

Dalal Street may continue its upward trend on August 19, supported by strong buying seen on August 18, supported by strong momentum from the previous session and optimism around upcoming GST reforms. However, resistance near the 25,000 level on Nifty may trigger some profit booking, potentially keeping the index range-bound between 24,500 and 25,000.

Stock Market Outlook for August 19

The Indian stock market closed on a strong note on August 18. The Sensex jumped 676 points to end at 81,273.75, and the Nifty rose 251 points to settle at 24,882.50. Experts believe the positive momentum could continue on August 19. However, profit booking near the 25,000 level may limit gains.

Traders will closely watch if Nifty can stay above 25,000 on August 19. A strong close above this level could signal more upside in the coming week. If the market faces resistance again, it may trade sideways within the 24,500 to 25,000 range.

Nifty Prediction Today: Will Nifty Cross 25,000 Again?

According to top market analysts at Bajaj Broking Research, if Nifty crosses 25,022, which was the previous day's high, it may move towards 25,250 in the next few sessions. But if it fails to break this level, the index could remain in a range between 24,500 and 25,000. Immediate support for Nifty is at 24,500, while major support lies between 24,000 and 24,200. This zone is considered strong because it includes the 200-day moving average and trendline support.

"The index formed a bear candle with a sizable upper shadow and a bullish gap below its base ( 24631-24852) signaling profit booking around the 25,000 levels. The index in the process closed above the 20- and 50-days EMA. Going ahead a follow through strength above Monday's high (25022) will open upside towards 25,250 levels in the coming sessions. Failure to do so will signal consolidation in the range of 25,000-24,500. Immediate support for Nifty is placed at 24,500 levels," Bajaj Broking Research stated.

Bank Nifty Prediction for August 19

Bank Nifty also showed signs of profit booking near 56,000. Analysts expect the index to move sideways between 54,800 and 56,300 in the coming days. Support for Bank Nifty is seen around 54,800 to 55,000, while resistance is near 56,000 to 56,300. A move outside this range will decide the next big trend for the banking index as per the market experts.

Why the Stock Market is Rising?

The recent market rally is driven by optimism around the next phase of GST reforms, announced during the Prime Minister's Independence Day speech. These reforms are expected to boost consumption and benefit key sectors like auto, FMCG, and realty.

Siddhartha Khemka from Motilal Oswal Financial Services said that strong domestic factors and government support may lead to better corporate earnings in the second half of FY26.

"On the earnings front, 1QFY26 results have been broadly in line, with Nifty EPS growth expected to improve to ~9% in FY26 (vs. 1% in FY25), aided by a positive domestic macros backed by fiscal and monetary stimulus. Consumer staple segment reported better than expected revenue prints and management commentary, which along with company growth initiatives and consumption revival are expected to drive volume-led revenue growth across the consumer space, including discretionary names," said the expert.

Top Sectors to Watch Today

On August 18, the Nifty Auto index jumped over 4%, leading the rally. Realty, Metal, FMCG, and PSU Banks also performed well. On the other hand, the IT sector saw some selling pressure.

Broader markets outperformed large caps, with Midcap and Smallcap indices gaining more than 1%.

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