Sensex, Nifty to snap 3-day losing streak? Key levels to track on September 1

Foreign investors (FIIs/FPIs) net sold Rs 8,313 crore worth of Indian equities on Friday. At the same time, domestic institutional investors (DIIs) net bought shares worth Rs 11,487 crore.

Benchmark indices Nifty and Sensex are set to open slightly higher on Monday, September 1, as GIFT Nifty traded at 25,597, up 46 points or 0.2 percent, hinting at a break from the three-day losing streak.

After a lukewarm start, Sensex, Nifty slipped in the last hour of trade on Friday, August 29, as auto, IT, and metal stocks outweighed support from FMCG stocks. The pressure also spilled over to the broader market, with mid- and small-cap indices trimming early gains to end lower.

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Foreign investors (FIIs/FPIs) net sold Rs 8,313 crore worth of Indian equities on Friday. At the same time, domestic institutional investors (DIIs) net bought shares worth Rs 11,487 crore.

Here are the key levels to watch out for in today's session

Nifty’s August close on a fragile note—breaking through key support zones and slipping beneath its two-month low—nearly confirms a bearish Harami setup on the monthly chart. The dominance of call writing at crucial strikes, coupled with unwinding and migration of put positions to lower levels, reinforces the prevailing bearish sentiment. With the index trading well below all major moving averages and resistances gradually shifting lower, the structure remains vulnerable. Unless Nifty decisively clears the 24,800 zone, upside momentum will stay capped. On the downside, holding above 24,400 is critical to prevent deeper corrections. For now, a “sell-on-rise” approach appears prudent, with any technical rebounds in oversold conditions likely to be viewed as fresh shorting opportunities.

"Closing August on a weak note, Nifty Bank’s breakdown below critical support levels and a strong bearish monthly candle reinforce the dominance of sellers. The steady shift of resistance to lower levels, combined with aggressive call writing and unwinding of put positions, leaves the market structure fragile and tilted toward weakness. For the near term, a decisive move above 54,500 is essential for any sustainable recovery," Dhupesh Dhameja of SAMCO Securities said. "On the downside, holding above 53,500 will be critical to prevent a deeper slide. Until then, a “sell-on-rise” strategy remains the most prudent approach, with minor rebounds in oversold conditions likely to offer fresh shorting opportunities rather than signalling any meaningful turnaround," he added.

India VIX eased by 3.49 percent to 11.75. Despite persistent global uncertainties, the subdued VIX signals a consolidation phase rather than a panic-led selloff. The calmness in volatility reflects cautious optimism, with market participants refraining from aggressive hedging activity.

The Put-Call Ratio (PCR) slipped sharply from 0.64 to 0.54, indicating elevated supply pressure. However, with PCR now deeply oversold, the possibility of a minor technical rebound cannot be ruled out.

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