Analysts see limited upside with rising resistance near 25,000 and potential for correction.
Indian equity markets staged a sharp recovery in the last hour of trade to end in the green, led by buying in technology and pharmaceuticals. The Nifty index briefly fell below 24,400 in afternoon trade, testing the lowest level since May, but rebounded to end near 24,600.
Yesterday, U.S. President Donald Trump signed an Executive Order to impose another 25% tariff on Indian exports, taking the total to 50%, effective August 27. Meanwhile, in a veiled response to Trump’s tariff threats, Prime Minister Narendra Modi reiterated that India would never compromise on the interests of the farmers.
India’s state-owned oil refiners are reportedly reducing their purchases of Russian crude. This comes even as Trump and Vladimir Putin prepare for a meeting as early as next week, and ahead of Putin’s anticipated visit to India later this month.
On Thursday, the Sensex closed 79 points higher at 80,623, while the Nifty 50 ended 21 points higher at 24,596. Broader markets bucked the trend, with the Nifty Midcap index ending 0.3% higher and the Smallcap index rising 0.1%.
And the retail investor sentiment surrounding the Nifty 50 flipped to ‘bullish’ by market close on Stocktwits, amid ‘high’ message volumes.
Stock Moves
Sectorally, barring real estate and energy, the rest of the indices ended in the green, with significant action in IT, pharma, and PSU banks.
Hero Motocorp was the top Nifty gainer, surging 4% following a steady June quarter earnings performance.
Other earnings movers include Lupin and Caplin Point, which rose 5%. On the other hand, Lumax fell 10%, and Prince Pipes ended 8% lower on weak earnings.
Stock Calls
Financial Independence advised a Buy Today, Sell Tomorrow (BTST) strategy on Hero Motocorp at the current market price of ₹4,669.
They also suggested buying CDSL at ₹1565 and Infosys at ₹1,436.
Markets: What Next?
Analyst Sunil Kotak said sentiment remains sideways on the markets. He identified support between 24,380 and 24,400, with a supply zone at 24,550-24,600.
Varun Bhargav of Profit X Research believes the index is expected to fall significantly in the coming days. Observations on the two-hour timeframe show that Nifty is testing a rising trendline from April lows, which is acting as dynamic support around the 24,600–24,700 zone.
Price action has formed a lower high structure, and a double top formation is visible around the 25,800 zone, indicating weakening bullish momentum. Bhargav added that a potential breakdown below this trendline could open the gates for deeper correction toward 23,000–22,500.
He identified support at 24,500, followed by 24,100–23,800 (immediate downside after breakdown), and 23,000–22,500 (gap fill zone). Resistance is pegged at 24,850–25,000 for the short-term and at 25,800 (major resistance).
They maintain the ‘sell on rise’ outlook as the global macroeconomic uncertainty continues, and the market’s failure to make new highs despite repeated attempts.
Globally, European markets traded mixed, while US stock futures indicate a positive start on Wall Street.
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