Stock Market Outlook Today, August 25, 2026: Sensex, Nifty Likely to Remain Volatile Amid Iran Sanctions

Indian stock markets are likely to remain cautious on Tuesday, August 25, 2026, after benchmark indices ended lower in the previous session. Investors are expected to track movements in crude oil prices, geopolitical developments and the possibility of fresh US sanctions on Iran, while stock-specific activity could continue to drive sectoral moves.

Stock Market Outlook Today, 25 August 2026: Sensex, Nifty Prediction for Tuesday

In the previous session, the Sensex declined 171.72 points, or 0.22%, to settle at 77,369.11, while the Nifty 50 fell 32.95 points, or 0.14%, to close at 24,219.05. The Nifty managed to remain above the important 24,200 level despite giving up its early gains.

Indian equities could see a lacklustre start as investors assess mixed global signals and the latest developments on the geopolitical front. Elevated crude oil prices remain a concern for the domestic market, particularly because higher oil costs can increase pressure on India's import bill and inflation outlook.

The possibility of additional US sanctions on Iran is another factor that could keep investors cautious. Any escalation in geopolitical tensions could affect crude prices and overall risk sentiment, potentially increasing volatility across equity markets.

"Indian equities are expected to remain lacklustre amid mixed global cues and a lack of domestic triggers. Geopolitical tensions remain elevated amid the prospect of fresh US sanctions on Iran, while sectoral and news-specific action is likely to remain in focus," said Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd

Nifty Prediction Today, 25 August 2026: Check Key Support and Resistance Levels

The Nifty formed a bearish candle in the previous session, with shadows on both sides, indicating consolidation and continued stock-specific activity. The index failed to cross last week's high of 24,360 and surrendered the gains recorded on Friday.

According to Bajaj Broking Research, the index closed around its 50-day EMA, making the 24,130 level an important near-term support. If the Nifty manages to sustain above this level, a recovery towards 24,280 and 24,360 could be possible.

A decisive move above 24,360, which was last week's high, could strengthen the recovery and open the way towards the 24,600 level in the coming weeks.

On the other hand, failure to move above the recent high could keep the index within a broader consolidation range of 24,000-24,350.

"Volatility is likely to be high in session on account of the monthly F&O expiry. Index holding above 24,130 will lead to a pullback towards 24,280 and 24,360 levels. In the coming sessions, a follow through strength above last week high 24,360 will signal extension of the pullback towards 24,600 levels in the coming weeks," said Bajaj Broking Research.

Overall, the Nifty is expected to remain in a broad consolidation phase, with the broader trading range seen between 24,000 and 24,600 in the near term.

The index has immediate support around 24,000-23,800. These levels are supported by a combination of the trendline joining the lows of the past four months, a previous major gap area and the 61.8% retracement of the earlier move from 23,606 to 24,774.

Bank Nifty Prediction Today

Bank Nifty also witnessed selling pressure in the previous session. The index formed a bearish candle with a higher high and lower low, reflecting intraday volatility and profit booking at elevated levels.

The broader eight-week consolidation range remains between 56,500 and 58,700. According to Bajaj Broking Research, the index is likely to remain within this range unless it gives a decisive breakout or breakdown.

The 58,000 mark has emerged as an important resistance level. If Bank Nifty remains below this level, the index could move towards 57,000 and 56,500. The latter levels are supported by the 200-day EMA and the lower end of the broader consolidation range.

"In the smaller time frame Bank Nifty in the last 15 sessions is seen consolidating in a narrow range retracing just 50% of its previous 7 sessions up move from 56,023 to 58,248. A shallow retracement signals higher base formation. On the higher side a move above 58,000 will open up side towards 58,500-58,700 levels in the coming weeks being the upper band of the recent consolidation," said Bajaj Broking Research.

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