Morning Action @ 7 AM – Tuesday, August 26th 2025

# In early action, Gift Nifty is too indicating a nervous open and that’s in line with our call of the of the day which suggests anxiety and nervousness prevails at Dalal Street beneath the surface amidst Trump’s 50% tariff hike.

# The biggest headwinds for our stock markets: 50% Trump’s tariff to come into effect this August 27th?

# 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: (-66, 24928)
Dow Futures: (-1, 45281)
Nasdaq 100 Futures (-45, 23381)

Nikkei (-459, 42349)
Hang Seng (-115, 25714)

Dow Jones (-349, 45282)
Nasdaq Composite (-47, 21449)
Bovespa (+57, 138025)

# MARKET TRENDS:
Global cues: Negative
FII: (-2466.24 crores)
DII: (+3176.69 crores)
Sentiment: Risky
Market Breadth: Negative
Technicals: Consolidation
F&O: 24000 - 25500 zone.

# INDIA VIX 11.76 (+0.26%)
# USD/INR Futures (Aug) (87.56)
# NIFTY PCR (28th Aug) 0.78
# Bank Nifty PCR (28th Aug) 0.50

# Nifty Outlook: Nifty’s upside is likely to be capped. An excessive intraday strength could be a mere dead-cat-bounce.

Caution shall continue to be the buzzword.

# WHAT TECHNICALS TELLS US ON NIFTY & BANK NIFTY:

NIFTY (CMP 24968):
SUPPORT: 24771/24605
RESISTANCE: 25155/25250
RANGE: 24750-25100
BIAS: Neutral
21 DMA: 24742
50 DMA: 25018
200 DMA: 24068

SENSEX (CMP 81636)
SUPPORT: 80751/80201
RESISTANCE: 81900/82300
RANGE: 80900-81900
BIAS: Neutral
21 DMA: 81019
50 DMA: 81981
200 DMA: 79264

BANK NIFTY (CMP 55139)
SUPPORT: 54700/53481
RESISTANCE: 55800/56600
RANGE: 54400-55400
BIAS: Negative
21 DMA: 55614
50 DMA: 56276
200 DMA: 52878

# STOCK MARKET NEWS:

# In yesterday’s trade, Nifty gained and reversed Friday’s massive losses but digging deeper bulls were still seen non-committed and waiting some big positive trigger.

WHAT HAPPENED AT WALL STREET IN OVERNIGHT TRADE:

# Investors step back at Wall Street in Monday’s trade after a furious Friday’s rally which was primarily triggered by Federal Reserve Chair Jerome Powell's dovish speech at the Jackson Hole Economic Symposium.

Please note, Fed Chair Powell signalled the possibility of a September rate cut during his Jackson Hole speech.

Wall Street was reconsidering the magnitude of rate cuts to be delivered by the Federal Reserve in their incoming cycle.

Fed Chair Jerome Powell seems ready to cut interest rates this September but has also said that he will still rely on incoming economic data about inflation and employment.

Powell has also acknowledged "GDP growth has slowed notably" this year.

# Gold prices ($3385 per ounce) traded with positive bias testing record highs of $3,500 in April amid signs of a dovish pivot by the Federal Reserve and robust demand for safe assets.

# WTI crude oil futures traded rangebound near the $64.45 a barrel supported by a bigger-than-expected weekly drop in US crude inventories.

# STOCKS IN SPOTLIGHT:

# The biggest headwind for our stock markets is if the Nifty can climb the ‘Wall of Worry’ of 50% Trump’s tariff to come into effect this August 27th?

# Strictly speaking, almost all of India's $86.5bn in annual goods exported to the US stand to become commercially unviable if these 50% rates sustain.

The US is India's top export market, making up 18% of exports and 2.2% of GDP. Please note, a 25% tariff could cut GDP by 0.2–0.4%, risking India’s growth slipping below 6%.

# Meanwhile, the RBI Governor Sanjay Malhotra said on Monday that the Reserve Bank of India will respond with policy measures if the 50% US tariffs (which comes into effect from Wednesday, August 27th) starts to impact domestic economic growth.

# In yesterday’s trade, FIIs turned out to be net sellers to the tune of Rs. 2466 crores.

# Technically, Nifty’s upside is likely to be capped at 25250 mark and downside risk remains at Nifty’s 100 DMA at 24647 mark.

The technical landscape of Bank Nifty too looks like ugly – A Sign of Exhaustion and shall continue its 'Big Underperformance'. Bank Nifty’s 200 DMA at 52878 mark.

# Nifty Outlook: Nifty’s upside is likely to be capped. An excessive intraday strength could be a mere dead-cat-bounce.

Caution shall continue to be the buzzword.

# STOCKS IN SPOTLIGHT:

1) JK Paper Ltd (+13%) spiked and so did paper stocks like TNPL (+11%) on hopes of higher sales volume after govt imposed minimum import price to curb dumping cheap imports. (The government imposed a Minimum Import Price (MIP) on Virgin Multi-layer Paper Board (VMPB), a move aimed at curbing cheaper imports).

2) Eris Lifesciences (+1.17%) was consolidating with positive bias after the company said that its manufacturing unit at the company’s Ahmedabad campus has received approval from ANVISA, which is Brazil’s national health regulatory agency.

3) Safari Industries (India) (+7%) gained amidst value buying.

4) Titagarh Rail Systems (+0.44%) after the company said that it has received a letter of acceptance (LoA) for a Rs 91.12 crore order for the shell assembly for locomotives from the Banaras Locomotive Works.

5) JNK India (+2.01%) rebounded after the company announced that it has secured significant order from its promoter entity, JNK Global Co., Korea.

6) Mazagon Dock (+1.88%) rose on reports of P-75(I) submarine talks nod. Media reports said the Ministry of Defence had authorised the company to start cost negotiations with Germany's Thyssenkrupp for the Rs 70,000-crore P-75(I) submarine project.

7) Shares of BSE (-1.8%), Angel One (-2.85%) and other capital market-related firms continued to tank after Sebi hinted at longer F&O tenors.

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

Nifty (24968): Sell at CMP. Stop at 25651. Targets 24800/24771. Aggressive targets at 24336-24400 zone.

Bank Nifty (55139): Sell between 55600-55750 zone. Stop at 56751. Targets 54700/54100. Aggressive targets at 53481 mark.

# Our chart of the day is bullish on CIPLA, UPL, CHAMBAL FERTILISER and NYKAA on any early excessive intraday weakness with an interweek/Intermonth perspective.

# The 1 Stock to Buy Right Now: Buy CIPLA (CMP 1593): Buy between 1570-1580 zone. Stop at 1531. Targets 1613/1671. Aggressive targets at 1750. (Interweek Strategy). Rationale: Signalling a massive breakout on the upside. Aiming unchartered territories with long term perspective. Key interweek support 1538. Major hurdles only at 1750 mark. 200-DMA at 1489.

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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.