Pre-Market Report (26 Aug 2025): Cautious Open as GIFT Nifty Dips 70 Points
Global Market Cues
Global equities began the week on a mixed note. Wall Street rallied after Fed Chair Jerome Powell reaffirmed the central bank’s readiness to cut rates if growth falters. The Nasdaq led gains on tech buying, while European indices stayed cautious amid fresh tariff discussions and slower manufacturing data. Asian peers opened largely flat-to-negative, reflecting cautious sentiment spilling into Indian pre-open trades.
Crude oil prices held steady near $82 per barrel as supply disruptions were offset by weaker demand expectations. Gold prices edged up slightly, reflecting safe-haven demand amid trade worries. Together, these global cues set a cautious backdrop for Indian equities.
GIFT Nifty Trend
The GIFT Nifty was trading nearly 70 points lower at 07:00 AM, suggesting a negative start for benchmark indices. This comes after Monday’s rally attempt was capped by selling pressure in banks and FMCG. Analysts warn that unless Nifty sustains above 25,000, intraday volatility may remain high.
Support zones are pegged at 24,850 and 24,700, while resistance is expected at 25,200–25,250. Bank Nifty faces hurdles at 56,000 with support near 55,000.
Technical Outlook
Charts indicate a short-term consolidation. The Nifty 50’s Relative Strength Index (RSI) slipped below 55, indicating waning momentum. Options data shows heavy call writing at 25,200 and 25,300 strikes, suggesting upside caps. Put writing is clustered at 24,800, underlining it as the immediate support zone.
Volatility Index (India VIX) rose to 14.6, reflecting heightened caution. Traders should expect wider intraday swings and adjust stop-losses accordingly.
Sectoral & Thematic Focus
Banks & Financials
Bank Nifty remains under pressure. Private sector banks saw profit-booking, while PSU banks may see selective accumulation. Watch SBI and PNB for momentum cues.
Information Technology
IT may consolidate after last week’s weakness. Global tech cues remain supportive, but rupee strength could act as a drag.
Automobiles
Autos are in focus ahead of festive demand season. Stocks like Tata Motors and Maruti may attract buying interest on dips.
Energy & Green Themes
Renewables and energy-transition plays are in the spotlight. Analysts see interest in Adani Green, NTPC, and power utilities amid global decarbonisation thrust.
Consumption & FMCG
FMCG stocks may stay defensive, but valuations remain stretched. Expect sideways trade in HUL, ITC, and Nestlé.
Stocks in News Today
- Reliance Industries: In focus ahead of AGM this week; expectations around 5G rollout and new energy projects.
- Infosys & TCS: Could see volatile moves post currency swings and global IT guidance cues.
- Hero MotoCorp: Watch after management changes; festive season demand will be a key driver.
- IndiGo: Remains on watch amid reports of capacity expansion plans.
FII & DII Flows
On Monday, foreign investors continued net selling worth ₹1,250 crore, reflecting caution over tariffs and rupee weakness. Domestic institutions, however, stepped in with ₹900 crore worth of net buying, limiting the downside. Sustained FII outflows remain a concern for near-term liquidity.
Rupee & RBI Watch
The rupee is likely to open around ₹87.35 per USD, aided by Powell’s dovish cues. However, tariff risks may again put pressure on the currency during the day. The RBI is expected to intervene selectively to avoid sharp volatility while allowing mild depreciation to support exporters.
Commodities Check
Crude Oil: Brent steady at $82; supply concerns balanced by weak global demand forecasts.
Gold: Holding firm at $2,340 per ounce; safe-haven demand persists amid trade uncertainties.
Base Metals: Copper and aluminium prices are range-bound, awaiting clarity on Chinese stimulus announcements.
Derivatives Data
Options data indicates a trading range of 24,800–25,300 for Nifty. Strong put OI buildup at 24,800 suggests support, while call OI at 25,200–25,300 caps the upside. Bank Nifty’s highest call OI is at 56,000, keeping it a stiff hurdle.
Trading Strategy for 26 Aug
Analysts recommend a selective buy-on-dips strategy in autos, PSU banks, and green energy plays. Traders should keep stop-losses tight below 24,800 for Nifty. Fresh long positions may be considered only if Nifty sustains above 25,100. For Bank Nifty, aggressive positions should be avoided until 56,000 is crossed convincingly.
Market Outlook
The overall outlook remains cautious-positive. While Powell’s comments provided comfort, tariff uncertainties and rupee pressure could drive volatility. Investors should adopt a stock-specific approach, focusing on autos, power, and select midcaps, while traders must manage risks tightly in the 24,800–25,200 band.
FAQs
Q: What is GIFT Nifty indicating today?
A: A 70-point dip, signaling a cautious start.
Q: What is Nifty’s intraday support?
A: Immediate support is at 24,850 with resistance at 25,200.
Q: Which sectors are safe bets?
A: Autos, PSU banks, and renewables may outperform.
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