Indian equity markets are expected to remain in a consolidation phase on September 3, 2025, as investors weigh a mix of domestic policy cues and global macroeconomic uncertainties.
The upcoming 56th GST Council meeting, scheduled for September 3 and 4, continues to keep market participants cautious, with potential changes in tax structures-especially for key sectors like automobiles-likely to drive stock-specific action.
Sensex & Nifty Prediction Today: Consolidation Expected Within Key Technical Levels
After slipping into negative territory on Tuesday despite a positive start, both the Sensex and Nifty showed signs of consolidation. The BSE Sensex closed 206.61 points lower at 80,157.88, while the NSE Nifty 50 declined 45.45 points to settle at 24,579.60.
Technical analysts at Bajaj Broking suggest that the Nifty has formed a small bearish candle with higher highs and lows, signaling range-bound movement ahead of the weekly expiry. The index is likely to trade between 24,400 and 24,800 in the near term. A fall below 24,400-which coincides with recent lows and key Fibonacci retracement zones-could accelerate downside pressure towards 24,000-23,800.
For any bullish momentum to return convincingly, Nifty must sustain above the 25,000-25,200 resistance zone, which could then open the path toward 25,250-25,650. Until then, a buy-on-dip strategy may be suitable for traders, particularly if foreign institutional flows remain supportive.
Bank Nifty Today: Caution Near Key Support Levels
Bank Nifty has displayed a bearish candle with lower highs and lower lows, reflecting sustained selling pressure, particularly around the 54,000 mark. Analysts point to 53,200-53,500 as the immediate support zone due to the confluence of the 200-day EMA and the May 2025 lows. A breach below these levels could push the index lower to 52,500-52,000, which is considered the next major support zone.
Banking and financial stocks dragged markets lower in the last session, with heavyweights like ICICI Bank (-1.15%) and HDFC Bank (-0.66%) contributing significantly to the fall. Any further weakness in this segment could intensify downside risk.
Stock Market Outlook Today, September 3: Sector-wise Stocks Performance
While banking and financial stocks exhibited weakness, PSU banks, metals, media, and real estate stocks offered some cushion to the broader markets. Mid-cap and small-cap stocks outperformed, with the BSE MidCap index up 0.27% and the BSE SmallCap index rising 0.64%, reflecting strong market breadth. On the BSE, 2,531 stocks advanced, while 1,614 declined.
The India VIX, a gauge for near-term volatility, rose modestly by 0.95% to 11.40, indicating a slight increase in investor nervousness ahead of key domestic and international data releases.
Derivatives Shift: New Expiry Cycle in Focus
Starting September 1, 2025, the NSE has implemented a significant structural shift by moving F&O contract expiries from Thursday to Tuesday, ending a 25-year tradition. The adjustment is expected to influence short-term trading volumes and expiry-day volatility as traders adapt to the new cycle.
Key Events to Watch
GST Council Meeting (Sep 3-4): Markets are watching for tax slab restructuring, particularly for sectors like automobiles, FMCG, and luxury goods. Any announcements here could trigger sectoral movements.
US Economic Data: Global investors are awaiting key macro data from the US, including manufacturing PMI, job openings, payroll data, and inflation prints. These indicators will provide clarity on the Federal Reserve’s future interest rate path and could influence foreign capital flows into emerging markets like India.