Dalal Street may start the week on a positive note, as investors seek to find beaten-down stocks at a decent bargain. However, global cues remained weak as Asian markets traded in the red on Monday, August 4.
At 7.30 a.m., the GIFT Nifty index hovered near 24,671, higher by 0.3 percent or 70 points.
In the previous session, Indian equity benchmarks ended lower, mirroring global market weakness as heightened US tariffs dampened investor sentiment. While the sell-off was broad-based, FMCG stocks emerged as a defensive play, supported by attractive valuations, resilient demand, and relative immunity to external trade disruptions
Globally too, the markets turned negative amid rising U.S. inflation and trade tensions. Wall Street opened August to heavy losses as a dismal US jobs report and a sweeping new round of tariff hikes by the Trump administration triggered a sharp, broad-based sell-off across global equities.
A selloff in Asian stocks extended to a seventh day on August 4 after weak US jobs data triggered a pullback in equities and fueled bets on an interest-rate cut by the Federal Reserve.
Here are the key levels to watch out for in today's session
A decisive break down below 24,535–24,500 may trigger further downside towards the next support region of 24,300–24,250. Unless the index convincingly reclaims its overhead resistances, any short-lived rallies are likely to face selling pressure.
With most key triggers now priced in, the market appears to be gearing up for a directional move. On the momentum front, the Relative Strength Index (RSI) has dipped below the 40 mark, reflecting a firm bearish hold. The final cue now lies with Foreign Portfolio Investors (FPIs), a potential short-covering rally from their end could be the only catalyst for a rebound, as their long-short ratio hovers near oversold territory.
Dhupesh Dhameja of SAMCO Securities said, "The Nifty remains firmly under bearish control, with key support levels giving way and resistance zones steadily shifting downward. Buyer participation appears to be weakening, while put writers are adjusting their positions lower - both are the signs of deteriorating sentiment. On the flip side, call writers continue to dominate, building significant positions at higher levels."
India VIX climbed 3.75 percent to close at 11.97. Despite two sharp sell-offs last week and a weaker close on the weekly basis, volatility remains contained below the psychological 13 level. This indicates that traders are not expecting a market-wide panic or sharp liquidation, and the market may remain within a consolidation phase rather than enter a steep free fall.
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