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Trade Setup for August 29: Nifty breaking crucial levels makes it vulnerable for more downside; check key zoneOver the past five sessions, the Nifty has slipped 672 points from its recent peak of 25,153. On Thursday, it ended 211 points lower at 24,501 amid heightened volatility.By Meghna Sen   August 28, 2025, 6:09:00 PM IST (Published)3 Min ReadIt was another bearish session on Dalal Street despite supportive global cues. The Indian equity market began Thursday's monthly expiry trade on a weak footing, as signaled by the GIFT Nifty, but the decline turned out steeper than expected.

The Nifty fell sharply as investors reacted to the 50% tariffs imposed by the US on August 27. After opening lower, the index attempted a recovery through the early to mid-session, but the bounce quickly lost steam. Selling pressure resurfaced in the latter half, dragging the Nifty to the day’s low.

Over the past five sessions, the index has slipped 672 points from its recent peak of 25,153. On Thursday, it ended 211 points lower at 24,501 amid heightened volatility.

The weakness was more pronounced in the broader markets, with the Nifty Midcap and Smallcap indices down 1.3% and 1.5%, respectively, extending their underperformance.

Sector-wise, IT and Realty led the losses with declines of over 1.5%, while Consumer Durables stood out as the sole gainer. Persistent selling in heavyweight stocks kept overall sentiment subdued despite select resilience.

The newly announced 50% US tariffs are expected to weigh heavily on India's exports of textiles and apparel, gems and jewellery, marine products (especially shrimp), leather, and footwear, sectors highly dependent on the American market.

Globally, investors are awaiting key US economic data, including Q2 GDP and weekly jobless claims, which could set the tone for broader market sentiment.

What do the Nifty 50 charts indicate?

According to Nagaraj Shetti of HDFC Securities, the underlying trend of the Nifty remains negative, with the possibility of further weakness in the near term. The next key supports are placed around 24,300-24,250, corresponding to previous swing lows and the 200-day EMA. Any pullback, he said, is likely to face strong resistance near 24,700.

Rupak De of LKP Securities mentioned that the market setup has shifted in recent days from a "buy on dips" strategy to a "sell on rise" opportunity. "In the current fast-changing dynamics, staying light appears to be a prudent strategy. On the upside, resistance is seen at 24,650 and 24,850, while support lies at 24,480 and 24,300," he said.

Nilesh Jain of Centrum Broking pointed out that the Nifty remained under pressure for another session, breaking below its 100-DMA at 24,670. The structure, he said, stays weak and signals a possible retest of the August low near 24,350 in the immediate term.

"If this level fails to hold, the next crucial support is at the 200-DMA around 24,070. Conversely, a sustained move above 24,700 could shift momentum and trigger a short-covering rally towards 25,000," he added.

After Thursday's decline, the Nifty has slipped below its 20-, 50- and 100-DEMA, indicating a weak positional trend, said Nandish Shah of HDFC Securities.

"Immediate supports are now placed at 24,337 and 24,266, corresponding to the previous swing low and the 200-DEMA, respectively. On the upside, 24,700 is likely to act as immediate resistance," he said.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