Will Dalal Street snap six-week losing streak or extend losses? Key levels to watch on August 11

Dalal Street clocked six straight weeks of losses on August 8, 2025.

Benchmark equity indices Nifty 50 and Sensex are set to open on a tepid note, kicking the week off with a quiet start on Monday, August 11, as persistent tariff concerns, muted earnings, and foreign institutional investor outflows dampened sentiment.

At 7.25 a.m., the GIFT Nifty index was higher by 0.2 percent or 50 points at 24,440.

In the previous session, Nifty and Sensex slipped back into the red as lingering tariff worries dampened sentiment. Losses were broad-based, with autos, metals, IT and pharma leading the decline.

On August 8, after three weeks of consecutive selling, Foreign Portfolio Investors (FPIs) turned net buyers of Rs 1,932 crore-worth of shares, as its highest single-session buy since June 26. Their shift to net buying signals a potential reversal or at least a pause in their risk aversion toward India.

At the same time, domestic institutional investors (DIIs) net bought Rs 7,723 crore of shares, according to provisional NSE data.

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

A sustained move below Friday’s low could accelerate selling pressure towards the 24,200–24,150 support zone, coinciding with the 200-DEMA and an unfilled gap. The index also slipped beneath its 100-DEMA at 24,590, adding to the hurdles for any meaningful recovery.

"Unless the index decisively reclaims 24,600, any rebound is likely to invite fresh shorting. The RSI has slipped below 40, breaking its previous lows — a sign of intensifying bearish momentum. Overall, the setup remains weak, with any pullbacks offering fresh short-selling opportunities," noted Dhupesh Dhameja of SAMCO Securities.

He added that FPIs have increased their net short futures positions to over 92 percent, highlighting persistent bearish conviction. Given the current technical and derivatives setup, a ‘sell-on-rise’ approach remains prudent, with the index likely to drift towards the 24,200–24,100 zone in the near term.

India VIX edged 2.95 percent higher to close at 12.03. Despite global headwinds, volatility remains muted, suggesting the broader market anticipates consolidation rather than a steep correction. This indicates caution is prevailing without signs of panic.

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