Dalal Street opened the session on a positive note despite weak global cues and tariff-related woes on Monday, August 4. The buying was broad-based, with the midcap and smallcap indices recording gains.
At 09:16 a.m., the Sensex was up 178.05 points or 0.22 percent at 80,777.96, and the Nifty was up 61.45 points or 0.25 percent at 24,626.80. About 1531 shares advanced, 1163 shares declined, and 162 shares were unchanged.
The sectoral indices were mixed, with PSU banks, metals, and auto stocks leading the gains, while IT and media sectors continued to drag. Nifty PSU Bank rose the most, up 0.75 percent, followed by Nifty Metal and Nifty Auto, which gained 0.70 percent and 0.46 percent respectively. Nifty Pharma, FMCG, and Infra also posted modest gains.
On the downside, Nifty IT fell 0.5 percent, extending recent underperformance, while Nifty Media slipped 0.3 percent. Nifty Energy was flat, down just 0.03 percent.
Overall, market sentiment remained cautious amid mixed global cues and ongoing concerns over economic growth. "Going forward, investors will closely monitor the upcoming RBI rate decision this week, while the risks remain tilted to the downside. A stable inflation outlook, potential progress in trade talks, and selective strength in domestic sectors are anticipated to lay the groundwork for a recovery," said Vinod Nair, Head of Research, Geojit Investments.
Global markets
U.S. stocks tumbled on Friday, with the S&P 500 posting its steepest daily drop in over two months, as fresh tariffs and a weaker-than-expected jobs report rattled investors. The July payroll data showed a sharper slowdown in job growth, with the previous month’s figures revised significantly lower, raising fears of cracks in the labor market.
The Dow slipped 1.23 percent, the S&P 500 fell 1.60 percent, and the Nasdaq dropped 2.24 percent.
Asian markets opened lower on Monday, tracking Wall Street’s slide, as renewed worries over the U.S. economy pushed expectations for a September rate cut higher and weighed on the dollar.
Institutional flows
The Foreign institutional investors (FIIs) extended their selling on 10th consecutive session on August 1 as they sold equities worth Rs 3,366 crore. On the other hand, Domestic institutional investors (DIIs) extended their buying on 20th day as they bought equities worth Rs 3,186 crore on the same day.
Technical levels
From a technical standpoint, the current chart reflects a distinct and concerning pattern characterized by lower lows and lower highs, which is apparent in the daily time frame structure, Rajesh Bhosale, Equity Technical Analyst, Angel One said.
He added that the next support level, projected to be around 24,500-24,470, is expected to act as a buffer, providing some stability against further declines. Additionally, the bullish gap of 24,380 is anticipated to be in proximity in the coming week, with a high possibility of being challenged.
"On the higher end, a series of resistance is seen from the 24,800 to 24,950 range, which has restricted every single recovery attempt in the week. And till these levels are authoritatively reclaimed, one must refrain from being complacent."
Derivatives outlook
Heavy call writing has emerged at the 25,000 strike, where open interest has surged to 1.01 crore contracts, establishing a firm resistance ceiling. "Conversely, the highest put open interest lies at the 24,200 strike, with 62.93 lakh contracts, confirming it as an immediate support level. Interestingly, put writers are now shifting to lower strike prices, reflecting waning confidence among bulls. In contrast, aggressive call writing at higher levels underscores sustained overhead supply," noted Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.
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