Market Wrap

Indian equities closed sharply lower, with the Nifty slipping into the 24,700 zone, down nearly 1%, and the Sensex also under pressure throughout the session. The selloff was broad-based, though Nifty FMCG outperformed as investors sought defensives. Globally, the sentiment remained risk-off, as Asian and European markets tumbled in tandem. In the U.S., fresh volatility emerged after Donald Trump announced steep new tariffs, including a 50% duty on India, weighing heavily on global trade-sensitive stocks and dampening overall investor confidence.

What's Ahead

The upcoming session promises volatility, with a cluster of critical domestic and global triggers on the radar. U.S. Q2 GDP and PCE data will shape global risk appetite overnight, while the August F&O expiry is set to add swings in Indian equities, particularly with Nifty trading below key 20- and 50-DMAs. On the corporate front, Reliance’s 48th AGM and India’s Q1 FY26 GDP print (Aug 29) could emerge as major market-moving events. Globally, Nvidia’s earnings on August 27 will steer tech sentiment, while tariff tensions continue to pose an overhang. Overall, trade is expected to remain choppy with a cautious undertone.

Market Snapshots

Institutional Activity

Sectoral Perfromance

Technical Outlook

Nifty 50

The Nifty 50 slipped 255.7 points (-1.02%) to close at 24,712.05, with broad-based selling following the U.S. decision to impose 50% tariffs on Indian goods. Only a handful of stocks ended higher, with Eicher Motors (+2.7%) and HUL (+2.32%) providing some cushion, while Sun Pharma (-3.3%) and Shriram Finance (-4%) dragged the index. On the technical front, Nifty’s RSI fell below 50, signaling weakening momentum, while the possibility of an EMA crossover has diminished. The index faces immediate support at 24,519/24,400 and resistance at 24,905/25,024. Sustained trade below 24,700 could invite further downside pressure.

Bank Nifty

Bank Nifty declined sharply by 688.85 points (-1.25%) to close at 54,450.45, with all 12 constituents ending in the red. Heavyweights like HDFC Bank (-1%) and ICICI Bank (-1.16%) led the fall, while PSU banks such as PNB (-2.33%) and BoB (-2.46%) witnessed steep cuts. The index traded weak throughout, hitting a low of 54,396.10. From a technical standpoint, Bank Nifty closing below 55,500 and RSI near a 3-month low reflects fading strength and possible FII outflows. Key support lies at 54,035/53,778, while resistance is placed at 54,866/55,123. A break below 54,000 could intensify selling pressure.

Sensex

The Sensex fell 849.37 points (-1.04%) to close at 80,786.54, dragged lower by heavyweights such as Sun Pharma (-3.4%), Tata Steel (-2.9%), and Bajaj Finance (-2.7%). Only 5 of 30 constituents managed to gain, led by HUL (+2.32%) and Maruti Suzuki (+1.81%), highlighting defensive buying. Near-term technical levels suggest support at 80,208/79,850 and resistance at 81,365/81,723. A sustained move below 80,200 may tilt the bias further negative.

FinNifty

The Nifty Financial Services index dropped 354.3 points (-1.35%) to settle at 25,952.6, with all 20 constituents in the red. Shriram Finance (-4%+) and REC (-4%+) were top losers, while heavyweights HDFC Bank (-1%), ICICI Bank (-1.16%), and Bajaj Finance (-2.73%) added to the weakness. The broad-based decline underscores the risk-off sentiment in the financial space. With no gainers in the basket, the near-term outlook remains cautious. Immediate support is seen around 25,800/25,650, while resistance is at 26,150/26,320.