Morning Action @ 7 AM – Wednesday, August 6th 2025

# Gift Nifty is indicating that the benchmark Nifty is likely to get hammered at open.

# That brings us to our call of the day which suggests Nifty has nowhere to go but down.

# Blame it on President Donald Trump’s latest announcement on the new tariffs against India, designed to penalize it for buying oil from Russia.

# Honestly speaking, India is really getting the rough end of Trump’s trade war!

# Meanwhile, Trump also said a trade deal with China is "very close" but threatened new tariffs against the European Union if it doesn't meet recent commitments.

# Bottom-line: Caution shall continue to be the buzzword as bulls will be seen praying that Nifty does not slips below its major inter-week support placed at 24473 mark.

# Long Story short: Dalal Street seen engulfed by a perfect storm amidst Trump's tariff jitters: And that’s the bad news!

# 7:00 AM GLOBAL UPDATE:
GIFT Nifty: (-77, 24664)
Dow Futures: (+42, 44154)
Nasdaq 100 Futures (-51, 22968)

Nikkei (+30, 40586)
Hang Seng (Closed, 24733)

Dow Jones (-62, 44112)
Nasdaq Composite (-137, 20917)
Bovespa (+180, 133151)

# MARKET TRENDS:
Global cues: Negative
FII: (-22.50 crores)
DII: (+3840.40 crores)
Sentiment: Risky
Market Breadth: Negative
Technicals: Breaking down
F&O: 24000 - 25300 zone.

# INDIA VIX 11.71 (-2.13%)
# USD/INR Futures (Aug) (87.88)
# NIFTY PCR (28th Aug) 0.97
# Bank Nifty PCR (28th Aug) 0.77

# Nifty Outlook: Caution will continue to be buzzword amidst signs of higher tariffs.

# WHAT TECHNICALS TELLS US ON NIFTY & BANK NIFTY:

NIFTY (CMP 24650):
SUPPORT: 24473/24050
RESISTANCE: 24857/25000
RANGE: 24500-24800
BIAS: Neutral
21 DMA: 25019
50 DMA: 25043
200 DMA: 24047

SENSEX (CMP 80710):
SUPPORT: 80353/79300
RESISTANCE: 81550/82100
RANGE: 80100-81100
BIAS: Neutral
21 DMA: 82019
50 DMA: 82153
200 DMA: 79208

BANK NIFTY (CMP 55360)
SUPPORT: 55000/53483
RESISTANCE: 56300/57207
RANGE: 54300-56000
BIAS: Neutral
21 DMA: 56560
50 DMA: 56424
200 DMA: 52626

WHAT HAPPENED AT WALL STREET IN OVERNIGHT TRADE:

# After a higher open, Wall Street closed Tuesday’s session on a negative note.

# On Tuesday, the Dow slipped 0.14%, the S&P 500 lost 0.49%, and the Nasdaq Composite declined 0.65%.

The key indices were actually seen stumbling.

# There are 3-Big Negative Catalysts this Wednesday morning:

1) President Trump said that tariffs on chips and pharmaceutical imports would be announced “within the next week or so”. So expect, Pharma stocks to continue receiving drubbing.

2) President Trump fires fresh salvo, says, ‘Will raise India’s tariff substantially in 24 hours': Also, add, India not a good trading partner.

3) Wall Street was seen trading with negative bias after the ISM Services PMI showed a surprise slowdown in the services sector, a rise in price pressures and another contraction in employment levels.

# Gold prices ($3383 per ounce) trades volatile but with positive bias driven by rising expectations of a Federal Reserve rate cut as well as safe-haven demand.

# WTI crude oil futures were seen trading with negative bias at the $65.50 per barrel after OPEC+’s decision to raise output and growing geopolitical uncertainty.

# STOCK MARKET NEWS:

# There are 3-Big Negative Catalysts this Wednesday morning:

1) President Trump said that tariffs on chips and pharmaceutical imports would be announced “within the next week or so”. So expect, Pharma stocks to continue receiving drubbing.

2) President Trump fires fresh salvo, says, ‘Will raise tariffs substantially in 24 hours': Also, add, India not a good trading partner.

3) Wall Street was seen trading with negative bias after the ISM Services PMI showed a surprise slowdown in the services sector, a rise in price pressures and another contraction in employment levels.

# Long Story Short: Looks like the bears are likely to be everywhere at Dalal Street.

# Meanwhile, all eyes will be on RBI's MPC meeting outcome to be wired this Wednesday, August 6th at 10: AM. The street will be keenly watching: Repo rate stance, inflation outlook, and India’s growth amidst Trump hiking the tariff.

# At the moment, Repo rates are at 5.5%
CRR is at 4%
WPI inflation is at around 2 year low
CPI Inflation is at 6 year low
GDP is at 4 years low at 6.5%
WTI oil prices too are depressed near the $66 a barrel.

# The big question: RBI Governor Sanjay Malhotra announce a repo rate cut?

Well, as of writing the market is divided between a cut and a pause especially after June’s jumbo 50 bps rate cut.

We suspect, this time, the RBI will maintain status quo and not look to cut rates by 25 bps despite inflation at lower levels and sluggish growth backdrop.

The RBI is likely to pause amidst the backdrop of the US tariff uncertainty.

# Meanwhile, all eyes will be also on corporate India’s Q1 earnings season:

Wednesday, August 06th:
BAJAJ AUTO
BHARAT FORGE
DIVIS LABS
GNFC
PFC
PIDILITE
PVR INOX
RAYMOND
RITES
TRENT.

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

Nifty (24650): Sell at CMP. Stop at 24963. Targets 24473/24050. Aggressive targets at 23250 mark.

Bank Nifty (55360): Sell at CMP. Stop at 56719. Targets 55000/54900. Aggressive targets at 53500 mark.

# Our chart of the day is bearish on AUROBINDO PHARMA, VOLTAS, BSE and HAVELLS on any early excessive intraday strength with an interweek perspective.

# The 1 Stock to Sell Right Now: SELL BSE (CMP 2367): Sell between 2390-2410 zone. Stop at 2749. Targets 2221/2151. Aggressive targets at 1975. (Interweek Strategy). Rationale: Weakening Momentum. Signalling a massive breakdown on the daily charts. Lower high/low pattern. Key interweek support only at 1975. Major hurdles only at 2601-2771 zone. 200-DMA at 1998.

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