Morning Action @ 7 AM – Tuesday, August 5th 2025

# Gift Nifty is indicating a turbulence start for the benchmark Nifty.

# Blame it on Trump threatening to "substantially" raise tariffs on India over Russian oil.

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

# Meanwhile, Wall Street index futures continues to trade firm on bets that the Federal Reserve will cut rates in the September 16-17 FOMC Meeting with markets now assigning an 81% probability to the dovish move.

Actually, the big bullish question on the September rate cut is: How big the rate cut would be?

Agreed, Fed’s September rate cut is back on the table but the street is also worried that President Donald Trump’s new higher than expected tariffs rates—set to take effect this Thursday, August 7th is also rekindling global trade tensions.

# That brings us to our call of the day which suggests nowhere to go but down as India is really getting the rough end of Trump’s trade war!

# Bottom-line: Caution shall continue to be the buzzword as bulls will be seen praying and hoping that Nifty hangs on to only small losses with major inter-week support placed at 24473 mark.

# Long Story short: Dalal Street may be engulfed by perfect storm amidst trump’s tariff jitters: But for the day, bullish consolidation will be the preferred theme on backdrop of strong global cues!

# 7:00 AM GLOBAL UPDATE:
GIFT Nifty: (-60, 24724)
Dow Futures: (+91, 44263)
Nasdaq 100 Futures (+41, 23228)

Nikkei (+181, 40428)
Hang Seng (+13, 24747)

Dow Jones (-585, 44174)
Nasdaq Composite (+403, 21054)
Bovespa (+534, 132971)

India is really getting the rough end of Trump’s trade war!

# MARKET TRENDS:
Global cues: Positive
FII: (-2566.51 crores)
DII: (+4386.29 crores)
Sentiment: Risky
Market Breadth: Neutral
Technicals: Consolidation likely
F&O: 24000 - 25300 zone.

# INDIA VIX 11.97 (-0.06%)
# USD/INR Futures (Aug) (87.75)
# NIFTY PCR (28th Aug) 1.02
# Bank Nifty PCR (28th Aug) 0.84

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

Sentiments are likely walk the tightrope between tariff threats and newly optimistic dovish Federal Reserve bets.

# WHAT TECHNICALS TELLS US ON NIFTY & BANK NIFTY:

NIFTY (CMP 24723):
SUPPORT: 24473/24050
RESISTANCE: 24857/25000
RANGE: 24600-24850
BIAS: Neutral
21 DMA: 25058
50 DMA: 25046
200 DMA: 24049

SENSEX (CMP 81019):
SUPPORT: 80353/79300
RESISTANCE: 81550/82100
RANGE: 80600-81600
BIAS: Neutral
21 DMA: 82149
50 DMA: 82170
200 DMA: 79212

BANK NIFTY (CMP 55619)
SUPPORT: 55011/54000
RESISTANCE: 56300/57207
RANGE: 55000-56100
BIAS: Neutral
21 DMA: 56636
50 DMA: 56424
200 DMA: 52607

WHAT HAPPENED AT WALL STREET IN OVERNIGHT TRADE:

# After a gap-up start in Monday’s trade, Wall Street indices sustained 1%-plus gains through the close.

# The Positive Catalyst: Rate cut hopes by the Federal Reserve on backdrop of a slowing labor market.

# Gold prices ($3379 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 $69.15 per barrel after OPEC+’s decision to raise output and growing geopolitical uncertainty.

# STOCK MARKET NEWS:

# The Biggest Negative Catalyst this Tuesday Morning: Trump Threatens To "Substantially" Raise Tariffs on India Over Russian Oil

# This new threat comes after the recent 25% tariff for India in the backdrop of New Delhi's “high tariffs on US goods” and especially, its purchase of Russian oil and military products.

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

# Technically, Nifty bulls are likely to be at bay as long as 25000 mark is a hurdle. Please note, the bears are likely to be everywhere on any close below 24473 mark.

Overnight, Wall Street key indices enjoyed strong session amid bets of incoming rate cuts by the Federal Reserve as markets looked past signs of a slowing labor market

# Amidst this backdrop, sentiments at our stock markets are likely to walk the tightrope between tariff threats and newly optimistic dovish Federal Reserve bets.

# Now, the upcoming 2-biggest catalysts:

1) India’s Q1 earnings this Tuesday: ADANI PORTS, BERGER PAINT, BRITANNIA, CONCOR, EVEREADY, EXIDE INDIA, LUPIN, NCC.

2) All eyes will be on RBI's MPC meeting outcome to be wired this Wednesday, August 6th as keenly watching: Repo rate, stance, inflation outlook, and India’s growth amidst Trump hiking the tariff.

# After morning volatility, we suspect, Nifty bulls are likely to regroup amidst 2-positive catalysts like:

1) Overnight, Wall Street was seen climbing, rebounding from a sharp selloff in last week’s trade, as investors ramped up bets on deeper Fed rate cuts following a weaker-than-expected jobs report.

2) WTI oil prices plunging towards $66 a barrel.

India is really getting the rough end of Trump’s trade war!

# Spotlight will be on stocks like:

1) Honeywell Automation India (-1.5%) tumbles after the company’s standalone net profit declined 8.71% to Rs 124.60 crore in Q1 FY26, compared with Rs 136.50 crore in Q1 FY25. However, revenue from operations jumped 23.18% year on year to Rs 1,183.1 crore in Q1 FY26.

2) MCX (+5.3%) climbs after Q1 profit soars 83% YoY, a strong set of numbers for the first quarter of FY26.

3) TVS Motor advanced 2.95% in Monday’s trade after the company has registered sales of 456,350 units in July 2025, which is higher by 29% as compared with the 354,140 units sold in July 2024.

4) UPL surged 7.09% after the company reaffirmed its full-year guidance, projecting revenue growth between 4% and 8%, and EBITDA growth in the range of 10% to 14% for FY26.

5) Tata Investment Corporation climbed 3.06% after the company’s board approved a 10-for-1 stock split. In the Q1FY26 earnings its Profit after tax (PAT) rose 11.62% year-on-year to Rs 146.30 crore, while revenue grew 2.11% YoY to Rs 145.46 crore. Profit before tax (PBT) stood at Rs 167.92 crore, marking a 7.84% increase over the year-ago period.

6) Narayana Hrudayalaya plunged 5.95% after the company’s consolidated net profit declined 2.3% to Rs 196.65 crore despite of 15.4% jump in net sales 1,507.27 crore in Q1 FY26 over Q1 FY25.

7) Shakti Pumps India tanked 7.58% after the company’s consolidated net profit declined 12.15% to Rs 96.83 crore in Q1 FY26 as against Rs 110.23 crore posted in Q4 FY25. Revenue from operations decreased 6.43% to Rs 622.50 crore in Q1 FY26 as against Rs 665.32 crore reported in Q4 FY25.

8) Sarda Energy & Minerals hit an upper circuit of 20% after the company’s consolidated net profit jumped 120% to Rs 437 crore in Q1 FY26 as against Rs 198 crore posted in Q1 FY25. Revenue from operations rose 76% year-on-year to Rs 1,633 crore in Q1 FY26.

9) Delhivery gained 7.39% after the company’s consolidated net profit jumped 67.50% to Rs 91.04 crore in Q1 FY26, compared with net profit of Rs 54.35 crore in Q1 FY25. Revenue from operations increased 5.60% year on year to Rs 2,294 crore in Q1 FY26.

10) Aditya Birla Capital flared up 10.70% after the company’s consolidated net profit jumped 10.04% to Rs 835.08 crore on 9.57% rise in total revenue from operations to Rs 9,502.69 crore in Q1 FY26 over Q1 FY25.

11) Vishnu Chemicals dropped 7.79% after the company's consolidated net profit declined 17.24% to Rs 32.22 crore on 11.54% fall in income from operations to Rs 345.94 crore in Q1 FY26 over Q4 FY25.

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

Nifty (24723): Sell at CMP. Stop at 24963. Targets 24473/24050. Aggressive targets at 23250 mark.

Bank Nifty (55619): Bank Nifty (55618): Sell at CMP. Stop at 56889. Targets 55149/54900. Aggressive targets at 53500 mark.

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

# The 1 Stock to Sell Right Now: SELL AUROBINDO PHARMA (CMP 1090): Sell between 1100-1115 zone. Stop at 1153. Targets 1050/1010. Aggressive targets at 957. (Interweek Strategy). Rationale: Weakening momentum. Signaling a massive long unwinding on the daily charts from a lower technical condition. Key interweek support 1010. Major hurdles only at 1144 zone. 200-DMA at 1201.

India is really getting the rough end of Trump’s trade war!

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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.