FIIs’ fresh shorts in F&O hinted at a bearish undertone.
Indian equity markets began a fresh trading week on a subdued note with the benchmarks remaining rangebound. Investors will be watching macro data cues in the truncated trading week ahead, as well as the August 15 meeting between US President Donald Trump and Russian President Vladimir Putin, aimed at discussing a potential Ukraine peace deal.
At 09:35 a.m. IST, the Nifty 50 traded 5 points higher at 24,368, while the Sensex gained 152 points at 80,010. Broader markets were also subdued, with the Nifty Midcap trading flat and the Smallcap index falling 0.1%.
Meanwhile, the India Volatility Index (VIX), a key gauge of market fear, has spiked 5%.
However, the retail sentiment on Stocktwits for Nifty remained ‘bullish’ amid ‘high’ message volumes at market open.
Stock Watch
Sectorally, barring consumer durables, FMCG, and technology, the rest of the indices traded in the green, led by PSU banks.
Indian oil marketing companies such as HPCL, BPCL, and IOC rose between 1% to 2% after the Union Cabinet approved ₹30,000 crore in compensation, payable in 12 tranches, for under-recoveries on domestic LPG sales.
ICICI Bank fell 0.5%. The bank has also raised the minimum balance requirement for new savings accounts across metro and rural branches.
Voltas fell 6% on a washout June quarter performance. Other earnings movers include Puravankara (-5%) and Gujarat Alkalies (-3%).
PG Electroplast fell over 10%, extending its sell-off from last week after the company revised its FY26 guidance sharply lower. Brokerage firm Nuvama has slashed its price target to ₹710 from ₹1,100 earlier.
Shilpa Medicare shares rose nearly 4% after it got an approval from the Indian drug regulator, Central Drugs Standard Control Organisation (CDSCO), for tablets used in the treatment of Non-Alcoholic Fatty Liver Disease (NAFLD).
Home First Finance gained 3% following a large block deal.
Watch out for IPCA Laboratories, Ashoka Buildcon, Bajaj Consumer, Bata India, BEML, Tilaknagar Industries, Titagarh Rail, 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 noted that Foreign Institutional Investors (FIIs) bought around ₹1,900 crore in the cash market, mainly due to the Bharti Airtel block deal. However, in the F&O segment, they built fresh net short positions in Nifty and Bank Nifty futures, signaling a bearish near-term stance despite cash inflows.
The Put-Call Ratio (PCR) stands at 0.66, deep in oversold territory. Historically, such levels often precede short-term market rebounds, even within a weak broader trend.
Patel recommends staying cautious and avoiding chasing short-covering rallies.
Prabhat Mittal identified Nifty support at 24,080 with resistance at 24,620. For the Bank Nifty, he sees support at 54,400 and resistance at 55,600.
Ashish Kyal said that if the Nifty index breaks below 24,330, it would resume the downtrend to 24,250 or lower levels. On the upside, an hourly close above 24,490 is necessary for a short-term pullback. Since the index is showing wild swings in either direction, Kyal advised traders to scalp intraday and keep booking profits.
Global Cues
Globally, Asian markets traded mixed, while crude oil prices declined on Monday as investors eyed the upcoming talks between the U.S. and Russia on a possible Ukraine ceasefire pact.
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