Pre-Market Report (25 Aug 2025): GIFT Nifty up 100 pts; Nifty eyes 25,300
Global & Domestic Setup
Global sentiment is moderately upbeat today, after US Fed Chair Jerome Powell signaled readiness to cut rates if growth risks materialize. Wall Street closed firm, and Asian markets are mostly positive, helping GIFT Nifty trade nearly 100 points higher. This sets the tone for a gap-up start for Indian indices.
On Friday, Indian markets snapped a six-day rally with a sharp sell-off led by IT and banks. Analysts now expect recovery attempts, with support zones near 24,700 offering a buy-on-dips opportunity. Resistance is placed between 25,300–25,500 for Nifty.
Technical Picture
Nifty50 closed last week at 24,870, slipping below the 25,000 mark, but still holding above its strong weekly support at 24,700. Analysts believe the zone between 24,700–24,750 will be defended, unless there’s an adverse global surprise.
For Bank Nifty, critical support is seen at 55,000, while resistance is at 56,300. Private banks remain weak, while PSU banks may outperform on selective buying. A sustained move above 25,100 in Nifty could invite fresh long positions, targeting 25,300 and beyond.
Sector Watch
Banking & Financials: Expected to remain in focus as FII selling pressure eases and DII support continues. PSU banks may see renewed traction.
Autos: Two-wheelers and PV stocks may attract investors ahead of the festive demand cycle. Tata Motors and Hero MotoCorp remain on watch.
Information Technology: IT stocks may attempt a bounce after last week’s correction, with Infosys and TCS on radar. A weaker rupee could aid exporters.
Pharma & FMCG: Defensives are likely to remain steady, supported by stable input costs and steady earnings visibility.
Metals & Energy: With crude stable and global commodity cues mixed, metals may trade range-bound while energy names look to Reliance AGM triggers.
Stock Ideas to Track
- Reliance Industries: In focus ahead of AGM this week; traders may position for announcements on new energy and telecom.
- Hero MotoCorp: Could see volatility after leadership reshuffle; auto demand outlook is a key driver.
- Texmaco Rail: May extend gains on strong order flow in railway capex cycle.
- IT majors: Infosys, TCS, HCL Tech may attempt recovery on supportive currency tailwinds.
FII/DII Flows & Derivatives
Foreign institutional investors (FIIs) were net sellers on Friday, pulling out more than ₹1,600 crore. Domestic institutional investors (DIIs) absorbed some pressure with inflows of nearly ₹330 crore. This tug-of-war is expected to continue.
Derivatives data indicates strong call writing at 25,300–25,500 strikes, while put writing is visible at 24,700. This suggests a near-term trading band. Volatility index (VIX) rose last week but remains below 15, implying manageable swings.
Trading Strategy for the Day
Analysts recommend a cautious long bias, with entry near dips around 24,800–24,850, stop loss below 24,700, and upside targets of 25,200–25,300. For Bank Nifty, aggressive traders may look for long opportunities only if 56,000 is crossed decisively.
Intraday traders should watch the first 30-minute range for confirmation. Sustained trade above 25,000 will indicate buyer strength. Risk management remains key as volatility can rise ahead of Powell’s detailed commentary and Reliance AGM.
Outlook
The short-term trend is cautious-positive, with support intact at 24,700. As long as Nifty holds above this zone, the path towards 25,300–25,500 remains open. Global cues remain critical, and FII flow data will guide intraday momentum.
For investors, this remains a time for staggered buying in quality sectors rather than chasing momentum. Autos, pharma, and capex-related plays may offer good accumulation opportunities on dips. Defensives like FMCG can provide portfolio balance.
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