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On Tuesday, the markets continued to fail at the final altar a day ahead of the Reserve Bank of India’s monetary policy meeting, proving that the trends are still under heavy weather and the prospects of going higher now rests on Bank Nifty. A testing time for traders.

LUMAXTECH: Buy CMP and dips to ₹1,150 | Stop: ₹1,135 | Target: ₹1,298-1,335

RSYSTEMS: Buy CMP and dips to ₹420 | Stop: ₹410 | Target: ₹470-490

ASTERDM: Buy above ₹601 and dips to ₹585 | Stop: ₹578 | Target: ₹639-655

Stocks opened with renewed selling pressure, with the Nifty 50 slipping below 24,700 to trade about 90 points lower and the Sensex down by about 300 points. Renewed US tariff threats dented sentiment, while the rupee tumbled to a six-month low, intensifying concerns over capital outflows and import costs.

Among movers, IndusInd Bank Ltd bucked the trend, surging 5% after the appointment of a new CEO and managing director, whereas DLF and Aurobindo Pharma traded in the red on earnings.

Market breadth was mixed as the Nifty Smallcap rebounded from intraday lows, but the Nifty Midcap underperformed the gauge.

Attention turns to the weekly expiry of August Sensex futures and options and RBI’s Monetary Policy Committee meeting for cues on volatility and liquidity.

Key results from Bharti Airtel, Adani Ports, Berger Paints, Lupin, Exide Industries, Gujarat Gas, MTAR Technologies, NCC, and Torrent Power guide sector rotations and near-term market direction.

Moving to the charts, the trends have been largely oriented towards trading rather than investing. On the daily charts, the KS support area around 24,500, combined with the median line support, has helped prices revive. Also, the support marked at (3) is now beginning to get tired, which could prove to be a blow to investment sentiment. The alternating candles seen in the daily chart of Nifty in the August series does not bode well for the market.

The trend suggests that last week’s rally was holding the resistance zone. The gap-up opening ensured that prices traded above the range area that has developed in recent days. Investors should track ongoing trends as the upmove needs to continue its way above 25,000 (Nifty Spot) to renew the bullish bias.

Momentum on hourly charts indicates that the prices, after settling down, seem to have witnessed a resumption of selling pressure. With the gradual and hesitant rise emerging from lower levels we can expect the rise to remain hesitant.

For undertaking shorts, we need to see the Nifty move below 24,500 for a potential drop towards 24,200 and 24,050, as per the Open Interest data a sharp fall is expected once key resistance levels break. With the Nifty closing below the Max Pain at 24,700 we should look to approach this expiry cautiously.

If we witness a 30-minute range breakdown today, we can consider trading on either side as the trends remain tentative and we expect some resistances to kick in. As a ranging market is in play, we need to be quick in profit-taking as the trend does not have sufficient steam to move strongly in either direction.

Readings from the Option data suggest that PCR has moved to 0.73, indicating that the trends are facing some pressure at higher levels. An important stage with some steady Call writing at the 24,800 level continues to be a hurdle for recovery levels fighting the buying interest at every rise.

At this juncture, we have to pay attention to multiple news triggers—a combination of US tariff threats, cautious investor sentiment, and domestic economic challenges—that have contributed to the sharp market decline and volatility in the rupee.

LUMAXTECH: Buy CMP and dips to ₹1,150 | Stop: ₹1,135 | Target: ₹1,298-1,335

The last two days prices are holding a bullish bias. The possibility of more upward traction has also emerged, as the stock has moved above recent highs. As momentum remains resolute, one can expect more upside in the next few days.

RSYSTEMS: Buy CMP and dips to ₹420 | Stop: ₹410 | Target: ₹470-490

ASTERDM: Buy above ₹601 and dips to ₹585 | Stop: ₹578 | Target: ₹639-655

Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.

Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.

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