Market Wrap

Indian equities are likely to start Tuesday on a cautiously positive note after Federal Reserve Chair Jerome Powell’s Jackson Hole remarks strengthened expectations of a possible September rate cut, supporting U.S. equities and broader global risk sentiment. Domestically, the Nifty remains in a broad August range of 24,025 - 24,774, with immediate support at 24,140–24,050 and resistance around 24,300–24,350.

The near-term setup continues to favour consolidation, with options positioning likely to keep the index range-bound until a decisive breakout. Metals showed relative strength in the previous session, although broader market participation remained selective.

The key risk remains U.S. trade policy, particularly the additional 25% tariff on Indian goods linked to Russian oil purchases, scheduled to take effect on August 27. The development could weigh on export-oriented sectors, the rupee and FII sentiment while also influencing crude-sensitive stocks.

What's Ahead

Tuesday’s session could remain volatile as traders position themselves ahead of the August expiry and the August 27 tariff deadline. A sustained hold above 24,050–24,140 could keep the door open for a move towards 24,300–24,350 and eventually the upper end of the broader range. A decisive break below the support zone, however, could trigger stronger selling pressure.

Investors will track developments around U.S. tariffs, the rupee, crude oil and FII/DII flows, alongside the U.S. Q2 GDP estimate on August 26. The sustainability of the Fed’s September rate-cut expectations will also remain important for global risk appetite. Closer to home, India’s Q1 FY26 GDP data on August 29 will be a key domestic trigger.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 closed 32.95 points lower at 24,219.05, extending its cautious tone amid weak global cues, elevated oil prices and ongoing geopolitical tensions. The index traded between 24,144.30 and 24,313.00, while the RSI remained below the 50 mark, indicating subdued momentum and a bearish near-term bias. The index faces immediate support at 24,065, followed by 23,970, while resistance is placed at 24,373 and 24,468. A sustained move above 24,373 could improve momentum and open the way towards higher resistance levels, while a break below 24,065 may increase downside pressure.

BankNifty

The NIFTY BANK declined 236 points to 57,525.95, remaining under pressure throughout the session as weakness across several major banking counters outweighed gains in a handful of stocks. The index traded between 57,245.95 and 57,873.75, with the RSI moving towards the 50 level, signalling weakening momentum. Immediate support is placed at 57,272, followed by 57,115, while resistance stands at 57,780 and 57,937. Holding above 57,272 could help the index stabilise, but a decisive break below this level may intensify selling pressure.

NIFTY FINANCIAL SERVICES

The NIFTY Financial Services index slipped 102.50 points to 26,158.50, with selling concentrated in insurers, NBFCs and several major financial constituents. Market breadth remained weak at 7 advances against 13 declines, highlighting continued pressure within the sector. The index has immediate support at 25,924, followed by 25,780, while resistance is placed at 26,393 and 26,537. The near-term setup remains cautious, and a sustained move above 26,393 would be required to signal improving momentum, whereas a break below 25,924 could expose the index to further downside.

Sensex

The BSE SENSEX declined 171.72 points to 77,369.11, as gains in metals, technology and consumer stocks failed to offset weakness in financial and infrastructure heavyweights. The index traded with a negative bias and market breadth remained weak, with 9 stocks advancing and 21 declining. Immediate support is placed at 76,842, followed by 76,516, while resistance is seen at 77,896 and 78,222. The near-term bias remains cautious, with a sustained move above 77,896 needed to strengthen the recovery setup, while a break below 76,842 could lead to increased selling pressure.