Nifty & Bank Nifty Stay Range-Bound, SIP Flows Hit Record High | August 2025

1. Equity Market Overview

Indian equities remained in a consolidation phase this week, with benchmark indices struggling to break past key resistance levels. Despite intraday volatility, both Nifty 50 and Bank Nifty failed to register decisive breakouts, signalling a tug-of-war between buyers and sellers.

While mutual fund flows and SIP contributions continue to show strong investor participation, the technical structure in key indices points to caution in the near term.

2. Nifty – Stuck in a Tight Range

The Nifty 50 once again ended in the red after a choppy trading session. Gains in the morning were quickly erased, with the index closing 97.65 points lower at 24,487.40.

• Range-bound trade: Price action remained confined to the 24,700–24,300 range for the fourth consecutive session.
  
  
• Resistance zone: The 24,700–24,800 area continues to act as a supply zone.
  
  
• Support: Strong demand remains near 24,340–24,300.
  
  
• Indicators: Daily RSI around 40 shows no strong reversal signals.
  
  

Key Levels to Watch:

• Upside breakout: Above 24,800 may target 25,000.
  
  
• Downside breakdown: Below 24,300 may open 24,200.
  
  

Derivatives Snapshot:

• Heavy call writing at 24,600 strike (1.22 crore OI) confirms stiff resistance.
  
  
• Put base at 24,400 strike (85.10 lakh OI) offers immediate support.
  
  
• PCR: Slipped from 0.99 to 0.65, highlighting call writers’ dominance.
  
  

3. Bank Nifty – Muted Momentum, Compressed Price Action

The Nifty Bank index continued its lacklustre movement, underperforming the benchmark and staying in a narrow band between the 10-DEMA and 100-DEMA.

• Closing: Down 467.05 points at 55,043.70.
  
  
• Tight consolidation: Range between 55,600 (resistance) and 54,900 (support) remains intact.
  
  
• RSI: Below 40, signalling lack of bullish momentum.
  
  

Key Levels to Watch:

• Upside trigger: Above 55,600 may open a move to 56,000+.
  
  
• Downside trigger: Below 54,900 could see a fall towards 54,450.
  
  

Derivatives Snapshot:

• Strong call writing at 56,000 strike (14.99 lakh OI) confirms overhead supply.
  
  
• Highest put OI at 55,000 strike (10.03 lakh) indicates near-term support.
  
  
• PCR: Dropped from 0.75 to 0.70, reinforcing the cautious tone.
  
  

4. Mutual Fund & SIP Trends – July 2025

While indices remain range-bound, mutual fund inflows continue to reflect investor optimism.

SIP Flows at Record High

• Monthly SIP inflows: ₹28,464 crore – highest ever, with 4.38% monthly growth.
  
  
• AUM movement: Mild July dip (-0.73%) due to market volatility, not outflows.
  
  

Why it matters: Steady SIP inflows show retail investors are staying disciplined, cushioning market swings and benefiting from compounding.

Mutual Fund Flows Snapshot

5. Market Outlook – Patience Over Panic

• For traders: Range-bound strategies work best until Nifty breaks 24,800 or 24,300, and Bank Nifty exits the 55,600–54,900 band.
  
  
• For investors: Stay committed to SIPs and staggered allocations, as market dips are more about volatility than trend reversals.
  
  
• For sector watchers: Banks and IT may see momentum on breakouts; FMCG remains in consolidation.
  
  

 Bottom Line:
Despite lack of momentum in frontline indices, strong retail participation through SIPs and mutual funds shows underlying market resilience. Until key levels are breached, expect choppy action — patience will be rewarded.