Nifty and Sensex are set for a strong start today, with Gift Nifty signalling an open above 24,600 — up 166 points or 0.7 percent — putting the indices on course to snap their two-day losing streak and wrap up the week on a stronger footing.
Dalal Street ended at the day's low, extending its losing streak to the second session as investors continued to sell off after U.S. President Donald Trump's 50 percent tariff came into effect. Equity benchmark Nifty 50 sank over 200 points on its monthly expiry session.
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Foreign investors (FIIs/FPIs) net sold Rs 3,857 crore worth of Indian equities on Thursday. At the same time, domestic institutional investors (DIIs) net bought shares worth Rs 6,920 crore, according to provisional exchange data.
Here are the key levels to watch out for in today's session
"Technically, this market action indicates a down trend continuation pattern. The crucial support of the previous opening upside gap of 18th Aug has been broken decisively on the downside at 24670, and Nifty closed below it. Another support of the ascending trend line connecting April to Aug 25's bottom has also been broken on the downside. This is not a good sign," says Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities. "The underlying trend of Nifty continues to be negative, and more weakness could be in store for the short term. The next lower supports to be watched are around 24,300-24,250 (previous swing lows and 200-day EMA). Any pullback could find strong resistance around 24,700 levels," he added.
"Bank Nifty formed a sizable bear candle with a lower high and lower low signaling continuation of the corrective decline. Index has recently generated a breakdown below the last 3 weeks' range (54,900-56,100), highlighting extension of the decline," Bajaj Broking Research said. "Going ahead, failure to move above 55,000 will keep the bias down and will open downside towards 53,500-53,000 levels in the coming sessions. Key support is placed at 53,500-53,000 levels, being the confluence of the 200-day EMA and the low of May 2025," it added.
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The Nifty Put-Call ratio (PCR), which indicates the mood of the market, rose to 0.86 on August 28, compared to 0.72 in the previous session. The increasing PCR, or being higher than 0.7 or surpassing 1, means traders are selling more Put options than Call options, which generally indicates the firming up of a bullish sentiment in the market.
The India VIX, which measures expected market volatility, declined by 0.12 percent to 12.18 on the daily charts, but continued to stay above its short-term moving averages.
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