Indian stock market: Indian benchmark indices, Sensex and Nifty50, opened on a positive note on Monday after five straight weeks of declines, as investors assessed recent U.S. tariff updates and the Federal Reserve’s policy stance in light of weak labour market data.
As of 9:28 am, the BSE Sensex had gained 239 points, or 0.30%, reaching 80,839, while the Nifty50 was up by 89 points, or 0.36%, at 24,654.
Data revealed that U.S. job growth in July was below expectations, with notable downward revisions for the prior two months. This has strengthened expectations of a potential rate cut by the U.S. Federal Reserve in September.
A reduction in U.S. interest rates usually results in lower Treasury yields and a softer dollar, enhancing the appeal of emerging market equities such as India’s. This could attract foreign portfolio investors (FPIs), who have been aggressively offloading holdings in recent weeks.
“ With over 30% of Nifty 500 stocks closing below their respective lower bollinger bands, we are beginning to approach extremes from where a swing higher could be seen. However if pull back attempts fail to clear 24670, expect continued slippage towards 24450-24000,” said Anand James, Chief Market Strategist, Geojit Investments Limited.
Here are key levels to watch out in short-term –
Indian stock market witnessed their longest losing streak in two years last week, weighed down by global uncertainties and continuous selling pressure that pulled benchmark indices lower for the fifth straight week.
Last week, the Nifty ended at 24,565.35 and the Sensex settled at 80,599.91, both registering losses of nearly 1%. The broader market took a harder hit, with the Nifty Bank falling 2%, while the BSE midcap and smallcap indices declined by 1.3% and 1.6%, respectively.
Nifty 50
According to brokerage firm Choice Broking, Nifty has breached its 100-day exponential moving average (EMA), with the next major support settling near the 200-day EMA at 24,180, followed by the psychological 24,000 mark.
“ Conversely, should the index reclaim 24,750, a short-term rebound towards the 25,250-25,500 zone cannot be ruled out; yet, persistent volatility and resistance near key option strikes signal overhead supply. Looking ahead, the market is expected to remain volatile as investors track global trade developments and key domestic policy cues. The Nifty’s ability to hold above the crucial 24,180 support will be pivotal; staying above this level could pave the way for a relief rally, while a break below may trigger further downside. Until a decisive move above resistance or below support materializes, a cautious and selective approach is advisable as participants await clearer trends,” the firm said.
Support Levels: 24400 – 24180
Resistance Levels: 24800-25000
Overall Bias: Sideways to Bearish
Bank Nifty
The Bank Nifty index ended the week at 55,617.60, marking a 1.61% drop compared to the previous week’s close. On the weekly chart, the index faced rejection at higher levels, struggling to hold above the key 56,000 level. This selling pressure signals a possible halt in the current uptrend and indicates a potential shift towards a sideways or bearish consolidation phase in the near future.
The brokerage firm said that Bank Nifty index formed a bearish-bodied candle with an upper wick, accompanied by consistent trading volumes.
“ This reflects sustained selling pressure at higher levels and limited buying interest, hinting at a possible consolidation or mild corrective phase in the near term. As long as the index holds below the 56,500 mark, a “ sell on rise” strategy remains advisable, with downside targets placed at 55,500 and 55,000. The Bank Nifty index is likely to face significant resistance in the 56,000–56,500 range. If the index continues to move higher, ICICI Bank & HDFC Bank from the private banking sector is expected to support the uptrend. Similarly, in the public sector banking space, SBIN is anticipated to show strength and contribute to any potential upside,” it added.
Bias– Sideways to Bearish
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