Stock Market Slips into Bear Hug as Technical Alarms Sound

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Break below key 24,500 support sparks technical breakdown; IT, Auto, FMCG lead broad-based sell-off

By S JHA

MUMBAI, August 8, 2025 — Indian equity markets extended their losing streak for a sixth consecutive week, with the Nifty 50 tumbling 230 points to close near the 24,360 mark on Friday. Persistent foreign institutional investor (FII) selling, weak global cues, and heightened concerns over US President Donald Trump’s 50% tariff on Indian exports weighed heavily on investor sentiment.

According to market tracker StockEdge, the week saw broad-based selling across all sectors, particularly in IT, Auto, and FMCG, despite attempts by domestic institutions to cushion the fall. “The index is now trading below its 100-day simple moving average (SMA), with key supports coming into focus ahead of critical global data releases and political developments in the United States,” added the Kolkata-based analyst.

Brokerage AngelOne noted that the week began on a positive note, with a brief bounce on Monday. However, lack of follow-through buying kept the market under pressure. A mild recovery attempt on Thursday was wiped out by Friday’s sell-off, resulting in a weekly decline of 0.82% and the Nifty ending just above 24,350 — its weakest close in 64 trading sessions.

Technically, the 24,500 zone, which had served as a strong base since May, gave way on Friday, confirming a breakdown on weekly charts. “This opens the door for further weakness, with the index likely to test its 200-day SMA around 24,000 in the coming sessions. Immediate support lies at 24,200, aligning with the 38.2% Fibonacci retracement of the April rally from 21,700,” stated Angel One in its note to clients.

Chart Insights per Angel One:

• Nifty closed sharply lower by 233 points, erasing Thursday’s gains.
• Open interest surged over 4%, reflecting an uptick in bearish bets, with heavy call writing in the 24,400–24,800 strike range.
• Relative Strength Index (RSI) slipped below 35, indicating strong bearish momentum.
• Less than 30% of Nifty 50 stocks are trading above their 20-day and 50-day EMAs.

Sector and Stock Action:

All sectoral indices ended in the red, with Realty and Metal leading the losses. NTPC, Titan, and Dr. Reddy’s were the top gainers, while IndusInd Bank, Bharti Airtel, and Adani Enterprises were the biggest losers, each dropping over 3%.
Global markets offered little respite, with a mixed performance across Asian and European indices following an overnight decline in the Dow Jones and a mild gain in the Nasdaq.

Market participants now await upcoming macroeconomic data and developments in US politics for cues, as traders brace for heightened volatility in the near term.

Disclaimer: This article makes no recommendation for any kind of trades in the stock market.

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