FII outflows and mixed global cues weighed on sentiment. Analysts flag resistance at 24,800.
Indian equity markets opened on a cautious note, with the Nifty index trading around 24,600 in early trade.
At 09:50 a.m. IST, the Nifty 50 traded 16 points higher at 24,581, while the Sensex was down 49 points at 80,550. Broader markets outperformed, with the Nifty Midcap and the Smallcap index rising 0.4%.
Meanwhile, the retail sentiment on Stocktwits for Nifty has moved back to ‘bearish’ from ‘neutral’.
Stock Watch
Sectorally, barring IT, all other sectors traded in the green, led by auto, metals, and PSU banks.
Hero Moto shares rose 3% to become the top Nifty gainer following strong July sales data.
Federal Bank fell 1% after its June quarter earnings failed to impress the street. Tata Power fell over 2% despite stable Q1 earnings.
In other earnings movers, Delhivery rose 4% after it reported a 67% rise in profits, and Sarda Energy surged 15% after its profits more than doubled in Q1.
ITC gained 1% after reporting a steady quarter with strong top-line growth and margin resilience despite uneven profitability.
Dilip Buildon rose 3% after its joint venture with RBL emerged as the lowest bidder (L-1) for the ₹1,503.63 crore Gurugram Metro Rail project.
Axiscades rose 3% on a ₹224 crore order win from the Ministry of Defence. Railtel gained 2% on securing an advance work order worth ₹166.38 crore from BSNL.
Watch out for Shree Cement, Aurobindo Pharma, DLF, Aditya Birla Capital, Marico, Ather Energy, Bosch, Sona BLW Precision Forgings, among others, as they report quarterly earnings today.
Markets: The Road Ahead
From a technical standpoint, SEBI-registered analysts on Stocktwits shared the trade setup.
Varunkumar Patel highlighted that Foreign Institutional Investors (FIIs) have sold over ₹3,300 crore in the cash segment. In the F&O segment, they have significantly increased their net short positions in index futures. This indicates a lack of confidence in Indian equities in the near term, driven by weak corporate earnings and a lack of progress on the US-India trade deal.
He also noted news reports that suggest the Group of Ministers (GoM) may soon submit their recommendations on GST rate rationalization. If the GST Council approves the proposals, it could be a significant structural boost to the economy and equity markets, according to Patel.
He advised traders to adopt a cautious approach, avoid aggressive trading, and focus on fundamentally strong stocks with strict stop-losses in place.
A&Y Market Research identified intraday Nifty resistance between 24,738 – 24,800, and support at 24,461 – 24,490. For Bank Nifty, they peg resistance at 55,850 – 55,921 and support at 55,443 – 55,557.
According to Pradeep Carpenter, Indian markets may open with mixed-to-positive sentiment, supported by macro and earnings tailwinds, though index-level caution persists. Both Nifty & BankNifty show technical weakness and short buildup, suggesting a cautious trading approach.
Ashish Kyal noted that if the Nifty moves towards 24,640 and forms a reversal candle, one can create short positions for a potential retest of 24,550 on the downside. Additionally, he highlighted a short-term cycle near 9.45 am, suggesting that if the index sees a 15-minute close above 24,640, traders can scalp for a move to 24,690-24,728 Gann levels. He sees the Nifty rangebound between 24550 and 24728 for today.
Global Cues
Asian markets traded mixed following disappointing US jobs data and increased speculation about a potential interest-rate cut by the Federal Reserve. Crude oil prices fell after OPEC+ once again decided to significantly raise output amid concerns over the health of the U.S. economy.
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