Week Ending August 08th 2025

Dear patrons, amidst the heightening tariff war between India and the US, markets traded mostly negatively to end the 7th consecutive week in the red. Benchmark Nifty lost close to 1%, most of which was due to losses on Friday. BankNifty also lost around 1% during the week.

In our view, Indian exporters will find a way out to export to the US circumventing tariffs. One of them would be to export from other Asian countries, who have a lot less tariff. Indian ingenuity or Jugaad WILL find a way to remain relevant in these tough times.

Biggest reason for markets falling is continuous weakness in the INR against USD. Loss in INR prompts selling by FIIs though DIIs remained consistent buyers. The MPC (Monetary Policy committee) meet failed to enthuse markets by maintaining status quo in interest rates.

Globally, US markets remained bullish with Nasdaq making yet another new lifetime high. European markets were also quite buoyant over the week. The tariff war, however, is on the rise with many European countries cancelling their deals with US corporates.

Let's take a look at charts and try to figure out market moves for the coming week.

Nifty closed below a very important support of 24400. Indicators are indicating further downward movement in Nifty, however, there is always light at the end of the tunnel. The light here being extremely low long positions of the FIIs on Nifty futures, oversold Put Call ratio and consistent DII buying. 24150-24100 should act as strong support for Nifty and 24600-24700 should act resistance. Markets are looking over sold and we may witness sharp short covering lead rally in coming days.

BankNifty managed to close above its important support of 54900. We expect BankNifty to lead any rally, if there is one. It has managed to close above its support on both daily as well as weekly charts. For the coming week 55500-55600 should act as major hurdle for BankNifty. 54500-54400 should act as a strong support.

Long term investors should look to accumulate good quality stocks in each dip in the markets. Traders need to be cautious and adhere to strict stop losses. Ample opportunity should be available on either side for traders. Discipline and Risk Management are a must to make money in the markets.

P.S.: This communication is for educational purpose only and does not recommend buying or selling any stock or index. Trade at your own risk.