Nifty Ends Losing Streak, Reclaims Key DEMA Levels

The Nifty index successfully concluded its seven-session losing streak on Thursday, August 20, 2026, gaining 153 points to close at 24,231. The index opened 147 points higher, maintaining strength through the first half before some profit booking emerged.

• Nifty closed at 24,231, up 153 points.
• Percentage gain: 0.64%.
• Opened 147 points higher.

Broader markets also registered gains, with the Nifty Midcap 100 rising by 0.4% and the Nifty Smallcap 100 increasing by 0.7%. All sectoral indices closed in positive territory, led by robust performance in the Media, Private Banks, and Realty sectors.

• Top Nifty 50 Performers: Eternal, Shriram Finance, Kotak Mahindra Bank.
• Primary Laggards: Tata Consumer, Hindalco Industries, IndiGo.

The Indian rupee recovered from a three-day decline, gaining 5 paise to close at 95.70 against the US dollar. This recovery was supported by a broader weakening of the greenback against major currencies and a significant drop in US Treasury yields.

Gold-loan financiers saw gains of 3-4% as gold prices reached a more than two-month high. Lower US Treasury yields and a weaker dollar drove this increase, further influenced by the US Treasury’s plan to double buybacks of longer-duration debt.

Nifty Reclaims Key DEMA Levels

Despite the improved near-term outlook, analysts emphasize that Nifty must reclaim key resistance levels to sustain its recovery momentum. Nandish Shah of HDFC Securities noted that the rebound allowed Nifty to reclaim its 50-day DEMA at 24,188 and 100-day DEMA at 24,203, indicating improved near-term momentum.

However, the index continues to trade below its 20-day EMA at 24,304 and 200-day EMA at 24,377, suggesting the broader short-term trend has not yet turned decisively positive. Shah highlighted the importance of Nifty maintaining above the crucial 24,000 support zone.

• 50-day DEMA: 24,188 (reclaimed).
• 100-day DEMA: 24,203 (reclaimed).
• 20-day EMA: 24,304 (below).
• 200-day EMA: 24,377 (below).
• Crucial Support Zone: 24,000 (61.8% retracement, upward-sloping trendline).
• Key Support Area: 24,000-24,050.
• Immediate Resistance Zone: 24,300-24,375.
• Sustained Buying Required: Above 24,375.

Technical Outlook Remains Cautious

Hitesh Rathi of Angel One suggested a cautiously buoyant near-term outlook, contingent on the 24,050-24,000 support zone holding. Rathi recommended utilizing any dips for long positions.

• Immediate Support: 24,150.
• Stronger Support Zone: 24,040-24,000.
• Resistance Anticipated: 24,250-24,350.
• Next Resistance: 24,400-24,450.

Rupak De of LKP Securities observed positive short-term sentiment, with Nifty closing significantly higher for the first time in 13 sessions after finding critical support. De projected Nifty could move towards 24,350-24,500, with 24,150 remaining the immediate support.

The near-term outlook for Nifty has improved with the breaking of the losing streak, but sustained recovery hinges on its ability to decisively breach and hold above critical resistance levels in the coming sessions.