Pre-Market Report (28 Aug 2025): GIFT Nifty down ~50 pts, global cues mixed
Quick Highlights
- GIFT Nifty trades ~50 pts lower, signalling weak open.
- Fresh U.S. tariffs on Indian goods remain key risk.
- FIIs continue selling; DIIs provide buying support.
- Wall Street strong, Asia mixed; Europe subdued.
- Nifty support at 24,600; resistance 24,900–25,000.
- Sectors in focus: Banks, IT, Pharma, Metals, FMCG.
Global Market Recap
Overnight, U.S. equities posted mild gains with the Dow Jones up 0.3%, S&P 500 up 0.4%, and Nasdaq higher by 0.2%. However, volatility remained as investors assessed the impact of steep U.S. tariffs on trade partners. In Asia, Japan’s Nikkei traded lower by 0.6%, Hong Kong’s Hang Seng dipped 0.9%, while Shanghai Composite was flat. European markets closed weaker as concerns of global slowdown resurfaced.
Global Indices Snapshot
| Index | Last Close | Change | % Change |
|---|---|---|---|
| Dow Jones | 39,120 | +120 | +0.31% |
| S&P 500 | 5,285 | +22 | +0.42% |
| Nasdaq | 17,210 | +45 | +0.26% |
| FTSE 100 | 8,180 | -30 | -0.37% |
| Nikkei 225 | 33,320 | -180 | -0.54% |
| Hang Seng | 18,250 | -160 | -0.87% |
| Shanghai Comp. | 3,045 | -5 | -0.16% |
GIFT Nifty & Volatility
As of 7:30 AM, GIFT Nifty was trading near 24,650 — about 50 points down from the previous close, indicating a weak start for domestic equities. The India VIX rose 3.5%, suggesting volatility will remain elevated as traders digest tariff risks and global uncertainty.
FII / DII Activity
Foreign Institutional Investors continued their selling streak, withdrawing capital from Indian equities amid concerns of tariff-driven slowdown. On the other hand, Domestic Institutional Investors stepped in with net buying, cushioning the fall. This tug-of-war highlights the contrasting sentiment between global and domestic participants.
Sectoral Outlook
Banks & Financials
Banking stocks remain under watch as FII outflows pressure heavyweights like HDFC Bank and ICICI Bank. PSU banks may see volatility after SBI’s strong retail growth trends yesterday.
IT
Infosys, TCS, and Wipro may find support from rupee weakness, though global client spending caution persists. Traders may eye select long opportunities in IT names.
FMCG & Pharma
HUL, ITC, and Sun Pharma may see defensive inflows. In volatile times, these sectors often act as safe havens for investors.
Metals & Autos
Tariff fears weigh on metals, with Tata Steel and Hindalco under pressure. Autos like Maruti Suzuki and Tata Motors could also face headwinds in export demand.
Stocks in Focus
- Reliance Industries: Energy price swings keep stock under watch.
- Infosys: Likely to benefit from weak rupee; watch for intraday momentum.
- HDFC Bank: Heavy FII selling keeps downside risk intact.
- Maruti Suzuki: Demand optimism ahead of festive season offsets near-term caution.
- SBI: Strong loan book growth trends could provide support.
Rupee & Commodities
The rupee is expected to open flat around 87.05 per USD, with RBI intervention keeping volatility low. Crude oil trades near $78 per barrel. Gold and silver extend gains, reflecting investor preference for safe-haven assets in uncertain times. Copper prices eased slightly, reflecting global growth worries.
Technical Outlook
Nifty today has support at 24,600–24,650 and resistance at 24,900–25,000. Bank Nifty support is near 55,000, resistance at 56,000. Indicators suggest consolidation with a negative bias unless strong global cues emerge.
Trading Strategy
Traders are advised to remain cautious, deploy strict stop-losses, and focus on large-cap defensives. Intraday, dip-buying may be attempted near 24,600 with a stop below 24,500. Profit-booking is advised near 24,900. Bank Nifty may see volatility; avoid aggressive long positions until clarity emerges.
0 Comments