Morning Action @ 7 AM – Wednesday, August 20th 2025

# The Big question remains…

# Can Nifty climb the ‘Wall of Worry’ of 50% Trump’s tariff to come into effect this August 27th?

# Also, in the US, the PPI inflation was seen rising on the backdrop of slowing growth.

# Most importantly, overnight Wall Street was seen slipping.

# Amidst this backdrop, can Nifty continue to remain bubbly in today’s trade?

# Our call of the day suggests to stay light on any excessive strength as the gyan mantra for the day is to stay nimble.

# 7:00 AM GLOBAL UPDATE:
GIFT Nifty: (-44, 24968)
Dow Futures: (-3, 44999)
Nasdaq 100 Futures (-53, 23417)

Nikkei (-695, 42851)
Hang Seng (-155, 24968)

Dow Jones (+10, 44922)
Nasdaq Composite (-315, 21315)
Bovespa (-2890, 134432)

# MARKET TRENDS:
Global cues: Positive
FII: (-639.50 crores)
DII: (+2150.80 crores)
Sentiment: Bullish
Market Breadth: Neutral
Technicals: Consolidation
F&O: 24000 - 25500 zone.

# INDIA VIX 11.79 (-4.46%)
# USD/INR Futures (Aug) (87.05)
# NIFTY PCR (28th Aug) 1.09
# Bank Nifty PCR (28th Aug) 0.78

# Nifty Outlook: An up-and-down session on cards.

# WHAT TECHNICALS TELLS US ON NIFTY & BANK NIFTY:

NIFTY (CMP 24981):
SUPPORT: 24769/24590
RESISTANCE: 25050/25300
RANGE: 24850-25100
BIAS: Positive
21 DMA: 24764
50 DMA: 25016
200 DMA: 24052

SENSEX (CMP 81644):
SUPPORT: 81000/80351
RESISTANCE: 82100/82784
RANGE: 81200-82000
BIAS: Positive
21 DMA: 81138
50 DMA: 82000
200 DMA: 79220

BANK NIFTY (CMP 55865)
SUPPORT: 55200/54700
RESISTANCE: 56700/57100
RANGE: 55300-56300
BIAS: Positive
21 DMA: 55912
50 DMA: 56335
200 DMA: 52800

WHAT HAPPENED AT WALL STREET IN OVERNIGHT TRADE:

# Wall Street bulls mostly struggled for direction in Tuesday’s trade ahead of busy Fed Week:

1) The minutes from the July Fed meeting will be wired on Wednesday
2) Chair Powell will deliver a key speech at Jackson Hole on Friday.

The Dow Jones retreated from record high while the S&P 500 and the Nasdaq slipped hard.

The markets awaited fresh and incoming hints on the Federal Reserve's monetary policy outlook.

Please note, minutes from the FOMC meeting and this week's Jackson Hole Symposium are likely to deliver hints on rate directions.

Equities have been supported by bets of multiple rate cuts by the Fed this year, stemmed by concerns of a softer labor market and hopes of disinflation after a CPI release that did not reflect triggers from tariffs.

# Gold prices ($3315 per ounce) traded rangebound and were in bearish consolidation mode as prospects of easing geopolitical tensions dulled the metal’s safe-haven appeal.

# WTI crude oil futures traded lower near the $62 a barrel following talks in Washington between US President Donald Trump and Ukrainian President Volodymyr Zelensky, coming after an inconclusive US-Russia summit in Alaska last Friday, August 15th.

# STOCK MARKET NEWS:

# Overnight Wall Street traded sluggish as Dow Jones erased gains after touching all-time high; as markets awaited fresh catalysts and incoming hints on the Federal Reserve's monetary policy outlook.

# The S&P 500 and the Nasdaq 100 were seen drifting lower from their record highs touched last week.

# Meanwhile, in yesterday’s trade, Reliance Industries was the star outperformer and led from the front, up 2.78%.

# Nifty was up for the 4th straight day as the benchmark ended near the psychological 25000 mark.

# Bullish traders Nifty will continue to aim at Nifty’s psychological 25000 mark.

# Our call of the day however suggests to spy with one big eye if the benchmark is able to close above the psychological important 25000 levels.

# The negative catalyst: FIIs were uninspired in yesterday’s positive session, selling to the tune of Rs 640 crores. Also, please note in Monday’s strong bullish session, FIIs were net buyers only to the tune of Rs 551 crores.

# Looks like, an up-and-down session on cards as the street awaits the next two big catalysts:

1) All eyes will be on the Jackson Hole Symposium, as the street will watch the speech by US Federal Reserve Chair Jerome Powell scheduled on August 22.

2) The FOMC Minutes to be released on August 20.

# The probability of a rate cut in September remains above 90%, despite the US PPI report which showed that the US wholesale inflation surged. Year over year, headline PPI rose 3.3%.

# STOCKS IN SPOTLIGHT:

1) Reliance Industries (+2.5%) ws star outperformer after the company said its Jio has scraped 1 GB/day plan.

2) Hindustan Zinc (+0.50%) was seen consolidating its board approved setting up of a 10 MTPA Tailings Reprocessing plant as part of the company’s overall 2X growth plan (i.e. doubling the capacity). The Tailings reprocessing plant, at a capital expenditure of up to Rs3,823 crore. aims to recover metal from the tailing dumps.

3) Vodafone Idea (+1.86%) gained even after jumping 5% in Monday’s trade after Q1 result where it reported a wider loss in Q1 FY26 despite modest growth in revenue.

4) Nifty Auto index continued to be in top gear, up around 5.5%+ in the last 2 trading sessions and above its 10-month high after the media report on the small car tax cut proposal. Also, helping sentiments were China assuring India to address its concerns over rare earths.

Maruti scaled fresh all-time-high, so did Ashok Leyland, Eicher Motors and TVS Motors.

# Now, before we get into detail of today’s trading session, here is the preferred trade on Nifty and Bank Nifty:

Nifty (24981): Buy between 24800-24850 zone. Stop at 24411. Targets 25050/25250. Aggressive targets at 25500-25670 zone.

Bank Nifty (55865): Buy at CMP. Stop at 54651. Targets 56150/56700. Aggressive targets at 57100 mark.

# Our chart of the day is bullish on NYKAA, POLICYBAZAAR, SBI, and SUPREME INDUSTRIES on any early excessive intraday weakness with an interweek perspective.

# The 1 Stock to Buy Right Now: BUY POLICY BAZAAR (CMP 1914): Buy at CMP. Stop at 1811. Targets 1978/2059. Aggressive targets at 2246. (Interweek Strategy). Rationale: Signaling a massive breakout on the upside. Enjoyed a strong session in yesterday's trade, up 2.53%. Key interweek support 1803. Major hurdles only at the 1978 mark.

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RISK DISCLOSURES ON DERIVATIVES:

# 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.

# On an average, loss makers registered net trading loss close to 50,000.

# Over and above the net trading losses incurred, loss makers expended an additional 28%of net trading losses as transaction costs.

# Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.

Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

This does not construe to be an investment advice. Stock market investments are subject to market risks. All information is a point of view, and is for educational and informational use only. The author accepts no liability for any interpretation of articles or comments on this platform being used for actual investments.