Morning Action @ 7 AM – Thursday, August 7th 2025

# Gift Nifty is indicating a gap-down start for our stock markets as India gets another rough treatment of Trump’s trade war!

# The Negative Catalyst: US President Donald Trump fires fresh salvo: Trump slaps double tariff on India, imposes additional 25% tariff on Indian goods.

# Trump is primarily unhappy with India’s continued purchase of Russian oil, a major source of funding for Moscow’s war in Ukraine.

# The new tariff will come into effect in three weeks and will be in addition to a separate 25% duty that takes force on Thursday, August 7th.

# That brings us to our call of the day which suggests Nifty’s rally and optimism has hit the rocks and now has nowhere to go but down.

# We will spy with one big eye if the Nifty is able to claw out of its red start and take over the tariff hike in its stride.

# The only silver-lining is that global cues are quite positive. Hopefully, a sizzling Wall Street on backdrop of Fed rate cut hopes lifts Nifty and its stocks.

Fingers crossed.

# Long Story Short: Volatility and choppiness could be the order of the day.

# 7:00 AM GLOBAL UPDATE:
GIFT Nifty: (-64, 24566)
Dow Futures: (+69, 44262)
Nasdaq 100 Futures (+63, 23379)

Nikkei (+249, 41044)
Hang Seng (+72, 24983)

Dow Jones (+81, 44193)
Nasdaq Composite (+253, 21169)
Bovespa (+1387, 134538)

# MARKET TRENDS:
Global cues: Positive
FII: (-4999.10 crores)
DII: (+6794.30 crores)
Sentiment: Risky
Market Breadth: Negative
Technicals: Breaking down
F&O: 23500 - 25300 zone.

# INDIA VIX 11.96 (+2.13%)
# USD/INR Futures (Aug) (87.83)
# NIFTY PCR (28th Aug) 0.99
# Bank Nifty PCR (28th Aug) 0.78

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

# WHAT TECHNICALS TELLS US ON NIFTY & BANK NIFTY:

NIFTY (CMP 24574):
SUPPORT: 24473/24050
RESISTANCE: 24700/24857
RANGE: 24400-24700
BIAS: Negative

SENSEX (CMP 80544):
SUPPORT: 80000/79300
RESISTANCE: 80950/81700
RANGE: 79700-80700
BIAS: Negative
21 DMA 81785
50 DMA 82138
200 DMA 79199

BANK NIFTY (CMP 55411)
SUPPORT: 54500/53483
RESISTANCE: 56100/57207
RANGE: 54200-55800
BIAS: Negative
21 DMA: 56560
50 DMA: 56424
200 DMA: 52626

WHAT HAPPENED AT WALL STREET IN OVERNIGHT TRADE:

# Wall Street was seen sizzling on Fed rate cut hopes in Wednesday’s trade!

# Bullish sentiments prevailed for US stocks, buoyed by rising expectations of a Fed rate cut in September, with odds climbing above 93% after weaker labor data.

# The biggest stock specific positive catalyst at Wall Street in overnight trade: Apple Inc., the iPhone maker will boost its U.S. investment by $100 billion, which sent the Dow Jones stock soaring.

# Gold prices ($3375 per ounce) trades volatile but with positive bias driven by rising expectations of a Federal Reserve rate cut as well as safe-haven demand.

# Copper prices were trading with negative bias, now near the $4.4 per pound, retesting the lowest since April and way below its all-time high of $5.9 after President Trump excluded refined copper from being tariffed.

# WTI crude oil futures were seen trading with negative bias at the $64.50 per barrel after OPEC+’s decision to raise output and growing geopolitical uncertainty.

# STOCK MARKET NEWS:

# The bears are likely to be everywhere at Dalal Street.
# There are 5-negative catalysts this Thursday morning:

1) Trump tariff threats.

2) FII selling: This week, FIIs have sold to the tune of Rupees 7588 crores.

2) Uninspiring Q1FY26 by Indian corporates.

3) The Indian rupee has extended its fall towards 87.83

4) Nifty’s weakening technical landscape.

5) RBI keeps Repo rates unchanged at 5.5% stance also was kept Neutral. The street perceives this as hawkish.

# That brings us to our call of the day which suggests Nifty’s rally and optimism has hit the rocks and now has nowhere to go but down.

# The Biggest Negative Catalyst: Trump slaps double tariff on India, imposes additional 25% tariff on Indian goods.

# Nifty's downside risk now at its 200-DMA at 24046.

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

Thursday, August 7th:
APOLLO TYRE
BIOCON, BSOFT
HPCL
KALYAN JEWELLERS
NALCO
PAGE IND
SOLAR INDS
TITAN.

# Bottom-line: Nifty is likely to get hammered with downside risk at 24473 mark and then at 24046 mark.

# The Gyan Mantra: Stay Nimble.

# Meanwhile, stocks on spotlight:

1) Divi’s Laboratories reported a consolidated net profit at Rs 545 crore for the first quarter ended June 2025, posting a 26.7% year-on-year (YoY) jump from a profit of Rs 430 crore reported in the year-ago quarter.

2) Jindal Stainless Steel reported a net profit of Rs 714 crore for Q1 FY26. This marks a 10% on-year rise from the Rs 648 crore net profit reported in Q1 FY25. The firm’s revenue from operations meanwhile rose to Rs 10,207 crore..

3) Blue Star reported a net profit of Rs 121 crore for Q1 FY26. This marks a 28% YoY decline from the Rs 169 crore net profit reported in Q1 FY25. The firm's revenue from operations meanwhile rose to Rs 2,982 crore

4) Pidilite Industries reported a net profit of Rs 672 crore for Q1 FY26. This marks a 19% YoY rise from the Rs 567 crore net profit reported in Q1 FY25. The firm’s revenue from operations rose to Rs 3,753 crore.

5) Power Finance Corporation (PFC) reported a standalone net profit of Rs 4,501.50 crore for Q1 FY26. This marks a 21% YoY rise from the Rs 3,717.88 crore net profit reported in the year ago period. Its revenue from operations meanwhile rose to Rs 13,773 crore.

6) Bharat Forge's standalone net profit rose 26%YoY to Rs 339 crore. Revenue from operations declined 10% YoY to Rs 2,105 crore.

7) Bajaj Auto reported a net profit of Rs 2,210 crore for Q1 FY26. This marks a 14% YoY rise from the Rs 1,942 crore reported in Q1 FY25. The firm's revenue from operations meanwhile rose to Rs 13,133.35 crore.

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

Nifty (24574): Sell at CMP. Stop at 24963. Targets 24473/24050. Aggressive targets at 23250 mark.

Bank Nifty (55411): Sell at CMP. Stop at 56719. Targets 55000/54900. Aggressive targets at 53500 mark.

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

# The 1 Stock to Sell Right Now: SELL ADANI GREEN, (CMP 958): Sell between 970-980 zone. Stop at 1031. Targets 929/901. Aggressive targets at 854. (Interweek Strategy). Rationale: Weakening Momentum. Signalling a massive breakdown on the daily charts. Lower high/low pattern. Key interweek support only at 854. Major hurdles only at 992-1025 zone. 200-DMA at 1056.

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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.