Textile stocks were also under pressure as Trump’s 50% tariffs on Indian exports kick in from Wednesday
Indian markets opened lower on Tuesday, with the Nifty50 index failing to hold the crucial 24,900 in early trade. Every major index, bar FMCG, was trading in the red. The Nifty Pharma index was the biggest drag on broader markets, sliding 1.35%.
At 10 a.m. IST, the Nifty 50 traded 172 points lower at 24,795.9, while the Sensex was down 574.3 points at 81,061.6. Broader markets also mirrored the market sentiment, with the Nifty Midcap index down 1.24% and the Smallcap Index trading 1.17% lower.
Retail sentiment for Nifty on Stocktwits turned ‘bearish’ in early trade. It was ‘neutral’ in the previous session.
Stock In Focus
Sun Pharmaceutical shares were down 2.4% in early trade after BofA Securities downgraded the stock to ‘Underperform’, while also cutting the target price to ₹1,570 per share from ₹1,730.
HDFC Bank stock dropped 1.2% to ₹970.30 after it began trading on an ex-bonus basis. The bank had announced a 1:1 bonus share issue along with its quarterly earnings last month.
Protean eGov Technologies surged more than 10% in early trade. It received a work order worth ₹1,160 crore from the Unique Identification Authority of India (UIDAI) for providing services to establish and run district-level Aadhaar Seva Kendras.
Textile stocks are also under pressure ahead of 50% U.S. tariffs on Indian exports, which take effect from Wednesday. Gokaldas Exports’ stock was down 1.4% to ₹702, while Pearl Global declined nearly 3% to ₹1,314.
Vikram Solar made a modest market debut, listing at a 2.4% premium at ₹340 per share on BSE. However, Patel Retail made a strong start on the main indices, listing at over a 17% premium at ₹300 per share on the NSE and ₹305/ share on the BSE.
Analysts Take
The index faced resistance exactly at the 61.8% retracement level of 25,153, measured from the recent decline between 25,669 and 24,363 last week, said SEBI-registered analyst Kush Ghodasara. This level has once again acted as a strong supply zone, restricting further upside.
If the index breaks below 24,850, it would signal confirmation of further downside momentum, he added.
The analyst placed potential downside targets at 24,675, where an earlier gap remains unfilled, followed by 24,345, which marks the previous swing low. A deeper retracement could even extend the move toward 23,000.
On the other hand, 25,250 should be treated as a strict stop-loss level for this view, he added.
On August 26, the Nifty faces support at 24,900-24,850, with weakness setting in below 24,914, while resistance stands at 25,003-25,150, according to SEBI-registered analyst Pradeep Carpenter. A move above 25,150 could open room toward 25,250.
On the 15-minute chart, support emerged near 24,960 at the cluster of exponential moving averages (EMA), suggesting Nifty is still at the verge of another attempt to break out above 25,000, noted SEBI-registered analyst Bharat Sharma.
For intraday trading, immediate resistance is located at 25,000-25,020, while support lies at 24,960–24,950. A breach below could drag the index toward 24,920–24,870, though the probability appears lower given today’s strong and sustainable price action.
Asian Markets
All major Asian markets, except those in Shanghai and Shenzhen, were trading lower on Tuesday.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<