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Market Update

Nifty : 24,426.85 -74.05 (-0.30%)

Sensex : 79,809.65 -270.92 (-0.34%)

* Equity benchmark Nifty settled at nearly a one-month low, slipping below the 24,500 mark, while the Sensex closed under 80,000 amid persistent FII selling, record-high USDINR levels, and pressure from the U.S. imposing a 50% tariff on Indian goods. Profit booking from higher levels also weighed on sentiment ahead of the release of India’s GDP data later today.

* The market continued its downward trajectory, with the Nifty losing about 2% or nearly 500 points over the last three sessions since the U.S. implemented the 50% tariff on August 27. The rupee weakened sharply, breaching the 88 mark against the dollar, as concerns over higher tariffs and sustained FII outflows mounted.

* Adding to the pressure, Reliance Industries slid over 3% intraday during its AGM after announcing plans to list Reliance Jio through an IPO next year. Major sectoral indices, including auto, metal, IT, and realty, declined between 1–2%. However, FMCG stocks gained 1% on expectations of a possible GST cut and a favorable monsoon supporting rural demand.

* At the close, the Nifty was down 74 points or 0.3% at 24,426, while the Sensex slipped 270 points or 0.3% to end at 79,809.

Technical Outlook:

* Nifty index opened negative but attempted recovery right from the start of the session. Buying emerged near 24500 zones much like a breather after the fall of the last four sessions but later fell to 24400 levels in the last hour. It has been making lower highs from the last five sessions and formed a bearish candle on daily frame.

* It closed with a bearish candle on the weekly frame and gave up all of the gains of the previous week. Now as long as the index remains below 24500, the trend is likely to stay negative with key support at 24442 and 24350. On the upside, hurdles are placed at 24700 and then 24850 zones.

Derivative Outlook:

* Nifty future closed negative with losses of 0.30% at 24577 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 24500 then 24600 strike while Maximum Put OI is at 24400 then 24500 strike. Call writing is seen at 24600 then 24500 strike while Put writing is seen at 24400 then 24450 strike. Option data suggests a broader trading range in between 23900 to 24900 zones while an immediate range between 24200 to 24700 levels.

Global Market Update

* European Market - European stocks were muted as investors awaited key inflation data from the US and Germany for clues on the path of interest rates and the health of both economies.

* Asian Market - Asian shares were mixed on Friday as investors awaited a key U.S. inflation report and after gains in technology stocks on Wall Street helped propel benchmarks to more all-time highs US Data PCE or wholesale Inflation and Personal Income.

* Commodity - Oil prices declined 1% to $68/bbl on Friday, weighed down by expectations of softer demand as the peak summer driving season in the US comes to an end, ahead of the Labor Day holiday next Monday.

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