Indian equity markets snapped a four-session positive streak to close lower on Friday, with the Nifty index sliding below 24,900. Ahead of a key week, with U.S. tariffs set to take effect on Wednesday, SEBI-registered analysts shared their trade setup for Monday on Stocktwits.
Rate Cut Signal Boost?
Pradeep Carpenter spoke about India’s advantage after U.S. Federal Reserve Chair Jerome Powell hinted at possible rate cuts during his speech at Jackson Hole.
His dovish tone lifted investor sentiment, pushing Wall Street higher as the Dow, S&P 500, and Nasdaq all rallied. The ripple effect spread across asset classes — U.S. bond yields fell, the dollar weakened, gold prices rose, and cryptocurrencies surged on expectations of easier liquidity.
For India, the signal is encouraging, Carpenter said. A softer dollar typically attracts foreign inflows into emerging markets, which could benefit equities, debt, and rate-sensitive sectors like IT, real estate, and housing finance.
While the rupee weakened on Friday due to local pressures, further dollar softness may stabilize it. Bond yields could also ease, improving growth prospects. With gold regaining shine and equities poised for fresh highs, India stands to gain if global risk appetite remains strong, he added.
25,000: Nifty’s Crucial Level
The Nifty 50 experienced a sharp correction on Friday, following four to five consecutive sessions of gains driven by GST rationalization and improved credit ratings for India. Despite the positive backdrop, profit booking, a possible technical pullback, and reactions to U.S. Fed Chair Powell’s comments weighed on sentiment, noted Bharat Sharma.
Currently, the index is retesting a breakout from the downward trendline while maintaining support at the 20- and 50-day EMA levels. This setup is moderately positive, but Friday’s large red candle signals caution, Sharma said.
A breach below 24,800 could deepen the fall, while reclaiming 25,000 this week may revive momentum, he added.
Key support levels
Looking ahead to the coming week, Arun Mantri highlighted the key support levels. The first support lies at 24,745, followed by a strong buying zone around 24,650. The rock-bottom support is seen near 24,560.
These levels will be crucial in guiding market direction next week and should be tracked carefully by traders and investors, he added.
Ashish Kyal said that the Nifty50 index closing above 24,950 on the 15-minute chart could offer a scalping opportunity towards 25,020–25,040 levels.
A break below 24,840 may trigger downside pressure, while a positive close on the lunar cycle would set a constructive tone for the coming week.
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