More Stories

Informist, Friday, Aug. 29, 2025

By Akash Mandal

MUMBAI – Traders expect the near-term pain for the Nifty 50 to continue with the index likely to test the psychologically crucial level of 24000 points. Many technical analysts see the Nifty 50 falling below this mark in September.

"The technical outlook for the market appears gloomy, with the Nifty 50 index currently positioned below the 100-DEMA (daily exponential moving average)," Osho Krishan, senior technical and derivatives analyst at Angel One, said. This positioning suggests a bearish trend and indicates a persistent decline in prices, he added. Any favourable macroeconomic developments that may arise could help to alleviate the pressure currently being felt in oversold market conditions, Krishan said.

Friday, the 50-stock index ended at 24426.85 points, down 74 points or 0.3% from the previous close. Unwinding of long positions and the fall in shares of index heavyweight Reliance Industries put pressure on the market. Some analysts expect some gains in the near term given that the market is in an "oversold" zone.

However, options data show gains are likely to be capped for the Nifty 50. The maximum addition of open interest on the call side was at the 24500-24600 strike prices. This could be a crucial resistance level for the Nifty 50 and the index could bounce back to 25000 points if these levels are crossed. The 25000 strike currently has the highest open interest concentration on the call side.

On the put side, traders bought some strike prices below the 25000 points level. The highest open interest concentration was at the 24400 strike, followed by the 25000 strike.

"We are of the view  that the market's short-term outlook remains weak, but a fresh selloff is possible only if the level of 24330 (for the Nifty 50) is breached... on the other hand, above 24550 (points), the pullback rally could continue up to the 20-day SMA (simple moving average) or 24700-24800 (points)," Shrikant Chouhan, head of equity research at Kotak Securities, said.

Factors such as high valuations, slow pickup in earnings growth, US tariff-related uncertainties, and better risk-reward offered by other emerging markets are likely to keep the market outlook hazy. Small and medium enterprises are likely to be the worst hit due to the 50% tariff imposed by the US on goods imported from India. With the segment being a key growth driver for banks, this in turn might lead to the entire financial sector facing pressure in the near term. Additionally, further rate cuts by the RBI to support economic growth may also put near-term pressure on net interest margins. Banks by far have the highest weightage on the benchmark indices and dictate the direction of the market.

--Nifty 50 Sept closed at 24577.30, down 74.40 point; 150.45-point premium to the spot index

--Nifty 50 Oct closed at 24699.00, down 74.90 points; 272.15-point premium to the spot index

--Nifty 50 Nov closed at 24807.00, down 61.00 points; 380.15-point premium to the spot index

Reliance Industries, RBL Bank, Eternal, BSE, Infosys, HDFC Bank, ICICI Bank, Mahindra & Mahindra, Kotak Mahindra Bank, InterGlobe Aviation, ITC, Bharat Electronics, CG Power and Industrial Solutions, State Bank of India, and Trent were the most active underlying stocks Friday.  End

Edited by Rajeev Pai

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.