Analysts flagged key technical levels, with Nifty support at 24,950 and resistance at 25,150
Markets opened on a negative note Thursday morning, with the Nifty 50 starting at 25,064.15 from its previous close of 25,083.75 and trading at 24,974.30, down 109.45 points or 0.44 per cent, at 9.45 am. The Sensex opened at 81,951.48 against its previous close of 82,000.71 and was at 81,679.84, lower by 320.87 points or 0.39 per cent, signaling a pause in the six-day winning streak that had lifted the indices to record highs.
The decline comes as market participants adopt a cautious stance ahead of Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole Symposium and growing concerns over proposed tariffs by former President Donald Trump. “The headwinds for the market from Trump tariffs will weigh on markets constraining the rally of the last 6 days,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.
Trump’s proposed 50 per cent tariffs, potentially taking effect on August 27, have emerged as a key concern for investors. “If the penal tariff of 25 per cent kicks in on August, and this appears likely, the impact on India’s growth will be not be 20 to 30 bp estimated with 25 per cent reciprocal tariffs, but more,” Vijayakumar added.
The morning session saw mixed performance across sectors, with defense stock BEL leading gainers with a 1.10 per cent rise to ₹378.30, followed by Bajaj Finance gaining 0.68 per cent to ₹901.65. Jio Financial Services climbed 0.65 per cent to ₹325.95, while Mahindra & Mahindra and Larsen & Toubro posted modest gains of 0.59 per cent and 0.25 per cent respectively.
IT stocks slide on dollar weakness concerns
Technology stocks faced pressure, with HCL Technologies declining 1.37 per cent to ₹1,473.00, reflecting concerns over potential dollar weakness following Fed rate cuts. “IT stocks may face pressure if the USD weakens post a rate cut cycle,” noted Hariprasad K, SEBI registered Research Analyst and Founder of Livelong Wealth.
Consumer and industrial stocks also retreated, with Grasim Industries falling 1.34 per cent to ₹2,842.70 and Asian Paints dropping 1.32 per cent to ₹2,532.60. SBI Life Insurance declined 1.21 per cent to ₹1,854.60, while Hero MotoCorp shed 1.06 per cent to ₹5,043.00.
Key resistance and support levels
Technical analysts highlighted key resistance and support levels for the indices. “Immediate resistance is placed at 25,150, and a breakout could open room towards 25,400. On the downside, support lies at 24,950, with stronger support near 24,800,” said Hariprasad K regarding the Nifty’s technical outlook.
The Bank Nifty continued to underperform, remaining trapped in its established range. “Bank Nifty continues to underperform, trapped in the 55,400–56,100 range. The 56,100 mark is a key hurdle; a breakout could trigger an uptrend,” analysts noted.
Global markets weak
Global market sentiment remained subdued as Asian equities traded in narrow bands following overnight weakness in U.S. markets. Traders scaled back expectations of immediate Fed rate cuts after U.S. jobless claims jumped to 235,000 against estimates of 226,000.
Commodities volatile ahead of Powell speech
Commodity markets showed volatility ahead of Powell’s Jackson Hole speech. “Precious metals remained highly volatile as traders positioned themselves for the Fed Chairman’s upcoming remarks at the Jackson Hole Symposium,” said Rahul Kalantri, VP Commodities at Mehta Equities Ltd.
Oil markets witnessed heightened activity after the U.S. Energy Information Administration reported a larger-than-expected inventory draw of 6.0 million barrels against forecasts of 0.8 million barrels. “The steep fall in stockpiles suggested stronger demand conditions,” Kalantri added.
FIIs turn buyers; DIIs extend support
Foreign and domestic institutional investor flows provided some support, with Foreign Institutional Investors turning buyers with ₹1,246 crore in equity investments on August 21 after being net sellers in previous sessions. Domestic Institutional Investors remained strong buyers with inflows of ₹2,546 crore.
Analysts advise cautious buy-on-dips strategy
Market strategists recommended a cautious approach given the current environment. “Given the backdrop of heightened volatility and mixed global signals, traders are advised to adopt a cautious ‘buy-on-dips’ strategy,” said Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking.
A significant trend emerging in the market has been the outperformance of large-cap stocks over mid and small-cap segments. “While Nifty is up by 1 per cent during the last one year, Nifty Midcap 150 is down by 0.35 per cent and Nifty Smallcap 250 is down by 4.7 per cent during the same period. This trend is fundamentally justified and likely to continue,” Vijayakumar observed.
Capital market stocks under pressure post-SEBI note
Capital market stocks faced selling pressure following SEBI’s comments on extending derivative expiries, with sentiment in stocks like BSE and Angel One weakening. “Angel One signals a breakdown,” noted Prashanth Tapse, Senior VP Research at Mehta Equities Ltd.
The morning’s trading reflected broader uncertainty as markets await clearer signals on Fed policy direction and potential trade policy changes. “Market focus remains squarely on the Fed’s policy outlook,” analysts emphasized, with Powell’s Jackson Hole speech expected to provide crucial guidance on future monetary policy direction.
Published on August 22, 2025
