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Trade Setup for August 28: Nifty set for more volatility amidst monthly expiry and US tariffsNifty broke below the key support level of 24,800, and the fall dragged it under the crucial 50-day EMA. By the close, the index had dropped 256 points to end at its lowest level since August 14.By Meghna Sen   August 27, 2025, 2:11:12 PM IST (Published)3 Min ReadAfter opening with a gap-down of 68 points, the Nifty extended its decline through Tuesday's session and closed near the day's low. The index witnessed sharp weakness at the start, before slipping into a range-bound trade with a weak bias for most of the day.

Nifty broke below the key support level of 24,800, and the fall dragged it under the crucial 50-day EMA. By the close, the index had dropped 256 points to end at 24,712, its lowest level since August 14.

In an otherwise weak market, Auto and FMCG heavyweights such as Eicher Motors, Hindustan Unilever, Maruti, and ITC led the charge, contributing significantly to the index's climb and providing some support.

On the flip side, it proved to be a tough session for names like Shriram Finance, Sun Pharma, and Tata Steel, which ended as the major losers within the Nifty pack.

With the sole exception of Nifty FMCG, all other sectoral indices ended the day in the red. Among them, Nifty Realty, Consumer Durables, and PSU Banks ended as the major losers for the day, indicating broad-based selling pressure.

The pain was even more acute in the broader market today, with both the Nifty Midcap and Smallcap indices continuing their underperformance. The Nifty Midcap 100 Index plunged 1.62%, while the Nifty Smallcap Index plummeted by over 2%.

The implications of US tariffs negatively affected the Indian equity market, resulting in a pessimistic beginning. The Nifty experienced a shaky start, opening significantly lower, with no signs of improvement seen before the mid-week holiday.

US President Donald Trump had notified an additional 25% duty, taking the total levy to 50%, which came into effect from August 27.

Globally, sentiment was further hit after Trump moved to fire Fed Governor Lisa Cook on allegations of falsifying mortgage documents, while also threatening export curbs on chips in retaliation against digital services taxes.

Indian markets are closed today on account of Ganesh Chaturthi. Going ahead, volatility is likely to heighten amidst the expiry session and in response to developments within global markets.

Investors will keep a close watch on any deferral of the secondary tariffs on Indian goods, as that could meaningfully lift near-term market sentiment.

What do the Nifty 50 charts indicate?

According to Nagaraj Shetti of HDFC Securities, the short-term trend of Nifty remains weak, with key supports at 24,600 and 24,400. However, a sustained move above 24,900 could trigger short covering in the near term.

Rupak De of LKP Securities said that the index is likely to stay under selling pressure as long as it trades below 24,850. On the downside, the correction could extend towards 24,150 or lower.

"If Nifty falls below 24,673, it could slip further towards the next support at 24,340. On the upside, 24,900 is expected to act as immediate resistance," said Nandish Shah of HDFC Securities.

Om Mehra of SAMCO Securities added that support lies at 24,600 (100-SMA) and 24,500, while resistance is placed around 24,900-25,000, where short-term moving averages converge. Unless the index reclaims these levels, the outlook is likely to stay weak.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsBSE SensexNifty 50share market todayTrade setup