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Market Update

Nifty : 24,500.90 -211.15 (-0.85%)

Sensex : 80,080.57 -705.97 (-0.87%)

*  Equity benchmark Sensex tumbled over 700 points while Nifty slipped nearly 24,500 level, with the Sensex erasing more than 1,500 points in just two sessions. Market sentiment weakened after the U.S. imposed a 50% tariff on Indian goods effective yesterday, coupled with persistent selling by Foreign Institutional Investors (FIIs). Broad-based pressure was seen across sectors as Nifty Auto, Banks, Metals, Realty, Defense, Midcap, Smallcap, and IT indices fell between 1–2% on the August F&O expiry day.

*  Investors turned cautious as the steep U.S. tariff is expected to weigh heavily on India’s economy. The U.S. contributes 20% to India’s goods exports, equating to 2.2% of GDP, and the move is seen as a major setback to growth prospects. At close, Nifty dropped 211 points, or 0.8%, to settle at 24,500, while Sensex slipped 705 points, or 0.90%, to end at 80,080. During the August derivatives series, Nifty lost nearly 300 points, or 1.1%.

*  On the global front, European markets ended higher, while Asian markets traded mixed following Nvidia’s weaker-than-expected sales outlook.

Technical Outlook:

*  Nifty index opened on a flattish note but bears took charge from the very beginning and dragged the index below 24500 marks. The session remained volatile due to the monthly expiry with swings on both sides but largely tilted in favor of the bears. Selling pressure from higher levels persists and it closed with losses of around 210 points.

*  It formed a bearish candle on daily frame and has been making lower highs from the last four sessions. Now till it holds below the 24650 zone weakness could extend towards 24350 and then 24200 zones while hurdles are placed at 24700 and 24850 zones.

Derivative Outlook:

*  Nifty future closed negative with losses of 0.94% at 24500 levels. Positive setup seen in UNO Minda, Nykaa, Titan, Polycab, Maruti, Cummins and Hero Motorcop while weakness in ABFRL, Indigo, CESC, MCX, Angel One, INOX Wind, Shriram Finance, BDL, Syngene and REC Limited.

*  On option front, Maximum Call OI is at 25000 then 24800 strike while Maximum Put OI is at 24500 then 24000 strike. Call writing is seen at 24600 then 24800 strike while Put writing is seen at 24500 then 24000 strike. Option data suggests a broader trading range in between 24000 to 25000 zones while an immediate range between 24300 to 24700 levels.

Global Market Update

*  European Market - European stocks gained after Nvidia Corp. results as investors continued to monitor political developments in France. Pernod Ricard SA advanced after its sales came in better than expected. Both Germany Index and France Index gained 0.4% and 1% respectively.

*  Asian Market - Asian market gained in mainland Chinese stocks were offset by losses in India after US President Donald Trump imposed a crushing 50% tariff on the nation’s goods. While a tepid revenue forecast from Nvidia weighed on Asian technology stocks.

*  US Data - GDP and Personal Consumption.

*  Commodity - Brent Crude dropped 1% to below $68/bbl on concerns the market is moving into surplus, shrugging off US efforts to force India to quit buying Russian crude.

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