Stock Market prediction for Monday, 31 August 2026: The Indian stock market ended the week on a cautious footing, extending their ongoing correction as worries over global interest rates, geopolitical risks and volatility linked to the new Closing Auction Session continued to dampen investor sentiment.
While the markets staged a strong rebound on Friday, led by robust buying in IT stocks amid positive global technology cues, the benchmark indices remained in the red for the third straight week.
Sensex, Nifty: What happened last week
For the week, the Nifty slipped around 0.31% to end at 24,175.65, while the Sensex declined nearly 0.36% to 77,264.51. The broader market, however, showed greater resilience, with the Midcap and Smallcap indices advancing about 0.52% and 0.51%, respectively.
On Friday, both benchmark indices, the Sensex and Nifty 50, ended a two-session losing streak on Friday, led by positive global market signals and softer oil prices. The Sensex gained 331 points, or 0.43%, to close at 77,264.51, while the Nifty 50 advanced 85 points, or 0.35%, to settle at 24,175.65.
Sensex, Nifty prediction for tomorrow: Sensex, Nifty outlook
According to Ponmudi R, CEO – Enrich Money, global monetary-policy expectations, crude oil prices and developments around the Strait of Hormuz are likely to remain key drivers for markets in the coming weeks. A sustained recovery in shipping activity could ease the geopolitical premium on crude and offer some relief to emerging-market equities. However, any fresh disruption to shipping routes could quickly reverse these gains.
“US monetary policy has emerged as the key global catalyst following hawkish comments by Fed Chair Kevin Warsh at Jackson Hole. Investors will closely track the August jobs report, scheduled for September 4, along with the upcoming inflation data. These readings will be crucial in determining whether heightened expectations of a September rate hike persist or moderate.
Domestically, the first-quarter GDP data will also be closely watched as an important gauge of broader market sentiment. The figures are expected to provide further insight into the pace of India’s economic growth amid elevated energy prices and the ongoing Middle East conflict, which has disrupted global supply chains and pushed up commodity prices,” he said.
Sensex
Sensex ended the week on a slightly higher note around the 77,265 mark, but still recording a weekly decline of around 0.4%. The index continues to remain within a broader consolidation structure. The 77,700–78,000 region remains the immediate resistance zone.
On the Sensex outlook, Ponmudi said, “A sustained breakout above 78,000 could strengthen the recovery and pave the way towards 78,500–78,800. On the downside, 77,000 remains the crucial psychological support, followed by the 76,700–76,500 region. Holding above 77,000 will be important to preserve the broader recovery structure, while a decisive break below this level could invite renewed selling pressure. Overall, the near-term technical outlook remains cautious.”
Nifty 50
The Nifty remained under pressure during the week and continued to trade within a corrective structure after failing to sustain above the higher resistance zones. However, the index recovered sharply from lower levels on Friday and closed at 24,175.65, indicating some buying interest emerging at lower levels.
On the Nifty 50 outlook, Ajit Mishra – SVP, Research, Religare Broking, said, “The 24,000–23,800 zone remains the immediate support area and is crucial for maintaining the broader structure. On the upside, 24,300–24,400 remains the immediate resistance zone, while a sustained breakout above 24,400 could improve the technical setup and trigger a recovery towards 24,600 levels.”
US markets performance
Wall Street’s major indices closed lower on Friday as investors turned cautious following Federal Reserve Chair Kevin Warsh’s reiteration of the central bank’s focus on containing inflation, raising concerns over the possibility of a rate hike.
The S&P 500 declined 19.23 points, or 0.25%, to 7,711.76, while the Nasdaq Composite fell 138.93 points, or 0.52%, to 26,402.42. The Dow Jones Industrial Average edged down 9.45 points, or 0.02%, to settle at 53,559.99. Despite Friday’s losses, all three indices ended the week higher, with the S&P 500 gaining 0.49%, the Nasdaq advancing 0.85%, and the Dow rising 0.53%.
South Korea’s Kospi index performance
South Korean stocks declined for the second consecutive week as the AI-driven optimism sparked by Nvidia’s outlook faded, while investors remained cautious ahead of the Federal Reserve’s Jackson Hole event.
The benchmark KOSPI index ended Friday’s session 123.49 points, or 1.79%, lower at 6,788.88, marking a 1.79% decline for the week. Among major index constituents, Samsung Electronics dropped 3.38%, while SK Hynix fell 4.45%. Battery maker LG Energy Solution also edged lower by 0.13%.
Taiwan stock market
Taiwanese stocks ended higher on Friday, supported by gains across the Glass, Optoelectronic and Financial sectors.
The Taiwan Weighted Index climbed 0.72% at the close, reaching a fresh one-month high.
Walsin Technology Corp emerged as the top performer on the Taiwan Weighted, surging 10% or 28.50 points to close at 313.50.
Disclaimer: This story is for educational and informational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified financial experts before making any investment decisions.
