Nifty snapped their longest losing streak in nearly 11 months on Thursday, ending seven consecutive sessions of decline in a broad-based rebound driven by an unexpected lifeline from across the Pacific, a US Treasury intervention that pulled long-term bond yields lower, weakened the dollar, and revived risk appetite across global markets.
“The intervention has dragged down the dollar, which, along with a firmer rupee and easing yield pressures, boosted attractiveness to EMs,” said Vinod Nair, Head of Research, Geojit Investments Limited, adding that “…the market’s optimism remains guarded as stubbornly high crude oil prices…continue to cast a shadow over inflation and corporate profitability.”
The Nifty 50 closed at 24,231.85, up 153.55 points or 0.64 per cent, while the Sensex gained 628.04 points or 0.82 per cent to settle at 77,537.72. The recovery came on a weekly expiry day, which kept intraday swings contained, with Nifty trading in its tightest range since August 6, just 81 points between its intraday high of 24,265.15 and low. Buying emerged precisely around the psychologically significant 24,000 level, which now coincides with the 61.8 per cent Fibonacci retracement of the previous upswing and an upward-sloping trendline connecting the April, June, and July swing lows.
Sectoral participation was broadly positive. Nifty Media led with a 2 per cent gain, followed by Realty at 1.4 per cent. Auto, FMCG, IT, Private Banks, Pharma and Infrastructure all advanced between 0.4 per cent and 0.8 per cent. PSU Banks were the notable laggard, ending marginally negative to flat. Among Nifty 50 constituents, Eternal, Shriram Finance and Kotak Mahindra Bank were the top gainers, while Tata Consumer, Hindalco and IndiGo ended lower. Gold-loan lenders gained 3–4 per cent as bullion surged, and sugar stocks extended gains for a second straight session, rising up to 10 per cent on firm domestic prices and festive demand expectations.
The broader market joined in. The Nifty Midcap 100 gained 0.4 per cent and the Nifty Smallcap 100 advanced 0.7 per cent, with market breadth turning decisively positive, the advance-decline ratio improving to 1.30. Within the Nifty 500 universe, 301 stocks closed in positive territory.
The Indian rupee also snapped a three-day losing streak, gaining 5 paise to close at 95.70 against the dollar, as the greenback slid to multi-month lows against major currencies. Spot USDINR has immediate support at 95.55 and resistance at 96.10.
Gold surged, with MCX Gold gaining around 2.3 per cent to ₹1,58,100, while COMEX Gold climbed from around $4,390 to $4,485, supported by a weaker dollar and lower US Treasury yields. “The momentum remains positive as long as bullion sustains above key support levels,” said Jateen Trivedi of LKP Securities, noting MCX Gold’s near-term range at ₹1,57,000–1,59,500. Brent crude, however, remained elevated near $94 per barrel, with WTI around $86.6, as US-Iran tensions showed no sign of resolution, keeping inflation and current account risks squarely on the radar.
The session also saw the release of the RBI’s August Monetary Policy Committee minutes, which some research firms flagged as among the most hawkish in the past year. “…5-6 members leaving the door open to future tightening,” noted Sarvam Goel, Founder of Pocketful. “…If inflation does not behave, a hike is on the table.” No rate action was announced, but the minutes reinforced that the central bank remains data-dependent heading into its next meeting on October 5–7, with crude prices and inflation prints the two key variables to watch.
“…Amid the prevailing uncertainty and elevated crude prices, we recommend maintaining a cautious stance on the index and focusing on selective stock-specific opportunities,” said Ajit Mishra, SVP Research at Religare Broking, adding that “…participants should prefer relatively stronger stocks and sectors while maintaining disciplined risk and position management.”
For markets to build meaningfully on Thursday’s rebound, the Nifty will need to decisively clear the 24,300–24,375 resistance band, where the 50-day EMA also sits, to negate the prevailing short-term downtrend. A sustained close above 24,575 by week’s end would further strengthen the technical structure and open the door toward 25,000–25,150. Until then, 24,000–24,050 is likely to hold as the floor, while the broader near-term trajectory remains hostage to the direction of global bond yields, crude, and any developments in the West Asia.
Published on August 20, 2026
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