Bulls and Bears Play Cat and Mouse Game with Umpire Trump

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Despite global headwinds and US tariff jitters, Indian equities show resilience on expiry day; FMCG leads sectoral rebound as market eyes key support and resistance levels

By S JHA

Mumbai, July 31, 2025 — The Indian stock market ended on a resilient note on Thursday, shrugging off early jitters sparked by geopolitical uncertainty and trade tensions with the US. The Nifty 50 closed at 24,756, marginally lower by 0.35%, while the Sensex rallied 431 points to end at 81,676, defying early weakness.

Markets opened on a gap-down, rattled by US President Donald Trump’s announcement of a 25% tariff and additional penalties on Indian imports, which triggered early volatility and investor anxiety. However, strong domestic fundamentals helped turn the tide.

Led by broad-based buying in FMCG, auto, and select financial stocks, benchmark indices recovered swiftly from day lows. The Nifty FMCG index surged 1.4%, outperforming broader indices and now trading above all key moving averages. Midcap and small-cap stocks also witnessed renewed interest, adding depth to the rebound.

Hindustan Unilever, ITC, Nestle and a few more were big gainers from the FMCG sector. Select stocks buzzed during the day, tracing Q1FY26 results. Shares of Kaynes technology rocketed with gains of almost 10% on Thursday.

Within the metal space, Graphite and HEG led the gains. Acutaas Chemicals extended gains with another rise of seven percent. Shares of Greaves Cottons also rose sharply on Thursday.

Brokerage firm Angel One noted that the monthly derivatives expiry added to the session’s volatility, with significant swings in both directions. Despite ending flat for the day, July marked the first monthly decline for Nifty in five months, shedding 2.93% or 749 points.

Technical Outlook:

Nifty closed below the 10-day EMA for the second week, with support holding near the 20-day EMA.
RSI stands at 41, indicating weak momentum, while less than 40% of Nifty stocks trade above their short-term EMAs.
Immediate support lies at 24,600 — a break below this could open the gates to 24,470.
Resistance levels are seen at 24,850, followed by 24,930–24,950; a breakout above these could revive bullish momentum.

Global Cues:

European markets stayed largely flat.
In Asia, Japan’s Nikkei rose over 1%, but other Asian indices fell sharply.
Softening commodity prices and steady domestic earnings lent support to Indian markets amid global volatility.

Despite the tariff-led panic, the strong intraday recovery reflects investor confidence in India’s long-term growth trajectory, suggesting that short-term geopolitical shocks may be absorbed without significant structural damage.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)