15 hours ago
The GIFT Nifty, an early indicator of how Indian equity markets are likely to open, is currently down 150 points, signaling a gap-down start for India's benchmark indices, the Sensex and the Nifty 50 on Thursday (August 7).
The decline in the GIFT Nifty came in reaction to news from the White House, which announced an additional 25% tariff on Indian goods, effectively doubling the total levies against one of the United States' major trading partners to 50%.
Wednesday's trading session witnessed choppy movement, as the Reserve Bank of India's (RBI) mid-quarter policy outcome failed to lift investor sentiment. The RBI's decision to keep the policy rate unchanged weighed on the market, with the Nifty ending below the 24,600 mark.
On the day of the policy announcement, the Nifty opened on a mildly negative note and remained under pressure during the first half, briefly testing Friday's low of 24,535. The second half was marked by choppy and range-bound movement.
The index eventually settled at 24,574, down 0.31%, or 75 points, for the day.
In today's subdued markets, Asian paints, HDFC Life and M&M led the charge among the Nifty's top performers. Conversely, it was a tough session for heavyweights like Wipro, Sun Pharma, and Jio finance, which ended as the major losers within the Nifty pack.
The market's overall cautious sentiment was evident across sectors. With the sole exception of Nifty PSU Banks, which managed to hold its ground, all other sectoral indices ended in the red. The hardest-hit sectors were Nifty Pharma, Healthcare, IT, and Realty, which all finished as major losers.
Both the Midcap and smallcap Indices underperformed as compared to Benchmark Index. The Nifty Midcap 100 fell 0.80% while Nifty Small cap Index lost 1.13%.
Looking ahead to Thursday, market attention will shift to earnings reports from Titan, Biocon, Emcure Pharmaceuticals, Dreamfolks Services, Apollo Tyres, and CE Info Systems.
Additionally, HUDCO, Hero MotoCorp, Trent, among others, which released its earnings after market hours today, will also remain in focus.
Nagaraj Shetti of HDFC Securities believes the underlying trend of Nifty continues to be weak amidst choppy movement. A sharp breakdown of the support of 24,500 could trigger quick decline down to the next support of 24,200 levels (200day EMA). Immediate resistance is placed at 24,800.
Heading into the weekly expiry, the 24,500 zone remains sacrosanct, and a breakdown below it could trigger further downside, potentially leading to a test of the 200DSMA around 24,200, which also coincides with a previously unfilled bullish gap, said Rajesh Bhosale of Angel One.
On the flip side, for bullish momentum to resume, Bhosale said that the Nifty needs to break above Friday's high of 24800, followed by a move above the 20 and 50DEMA, both placed around 24,900. A breakout above this cluster of resistance levels could confirm a resumption of positive momentum.
LKP Securities' Rupak De expects the Nifty to remain a 'sell on rise' as long as it stays below 24,850.
"In the short term, the index may trend downwards towards 24,400, which is expected to act as a crucial support level on a sustained or closing basis. If Nifty sustains below 24,400, it is likely to witness a more serious correction."
