Sensex, Nifty to extend gains to second day? Key levels to track on September 2

Positive start to the week: Sensex and Nifty gain as DIIs outpace FII selling

Indian benchmark indices Sensex and Nifty are likely to be on firm footing on September 2, extending the positive momentum from the start of the new month, powered by gains in IT and auto stocks. At around 7:22 am, GIFT Nifty quoted 24,767, up 0.16 percent, signaling a steady start for Dalal Street.

The optimism stems from Monday’s broad-based buying, driven by India’s stronger-than-expected GDP growth in the first quarter. IT and auto counters were the star performers, while India VIX slipped 4 percent, hinting at improving market stability.

However, flows remained divergent - Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,430 crore, even as Domestic Institutional Investors (DIIs) stepped in aggressively with net purchases of Rs 4,345 crore.

On the technical front, Nifty has broken out of a falling wedge pattern—a classic bullish reversal signal.

“As long as the index sustains above 24,540–24,500, the trend remains positive, with upside targets at 24,700–24,800 and possibly 24,900. A drop below 24,460 would be the first sign of weakness,” said Hariprasad K, SEBI-registered Research Analyst and Founder of Livelong Wealth.

Global sentiment offered additional support. A US court declared most of President Trump’s tariffs illegal, though they will remain in effect until October 14 pending a Supreme Court review.

Meanwhile, Asia-Pacific markets opened largely higher, as investors tracked developments at the Shanghai Cooperation Organization (SCO) leaders’ meeting in Tianjin, even as tariff uncertainty lingered. Japan’s Nikkei 225 advanced 0.3 percent, South Korea’s Kospi gained 0.4 percent, while Australia’s S&P/ASX 200 slipped 0.4 percent.

US markets were shut on Monday for the Labor Day holiday, and futures traded flat in early Asian hours at the start of what has historically been a challenging month for equities, especially amid renewed trade-related jitters following the court ruling.

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