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Trade Setup for August 6: Trump tariff warning, RBI policy to determine Nifty trajectoryIt appears that market participants are awaiting a key trigger, and the RBI policy announcement in the coming session is likely to be the catalyst that determines the next directional move.By Meghna Sen   August 5, 2025, 8:25:57 PM IST (Published)3 Min ReadThe market continued its alternating pattern of gains and losses for the fourth straight session on Tuesday, August 5. After a sustainable upmove on Monday, the market was not able to continue its upside momentum today and closed lower.

This decline came despite positive cues from broader Asian markets. Domestic indices had a shaky start, weighed down by renewed concerns following a tweet from Donald Trump hinting at potential tariffs on India. While the reaction was muted, it added to the cautious tone, with the Nifty trading in a choppy range through most of the session.

The index opened on a positive note but quickly slipped into weakness. Mid-session saw range-bound movement, followed by increased volatility towards the close.

Nifty ended the day down 73 points, just below the 24,650 mark.

The index also slipped below the 24,700 level, dragged down by heavyweights like Reliance Industries and banking majors.

Financials remained the biggest drag, with ICICI Bank and HDFC Bank among the top laggards. On the upside, Titan, IndusInd Bank, and SBI Life emerged as notable gainers in an otherwise weak market.

Amongst the sectoral indices, Nifty OIL/GAS, Pharma and FMCG, ended as major losers while Auto, Consumer durables and Metals ended in the green indicating pockets of buying interest despite the overall cautious sentiment.

Both the Midcap and smallcap Indices witnessed profit booking along with the Benchmark Index. The Nifty Midcap 100 fell 0.39% while Nifty Smallcap Index lost 0.16%.

Meanwhile, foreign investors were net sellers in the cash market on Tuesday, while domestic investors were net buyers.

It appears that market participants are awaiting a key trigger, and the RBI policy announcement in the coming session is likely to be the catalyst that determines the next directional move, said Rajesh Bhosale of Angel One.

"The 24,500 zone has acted as a strong support area since May and also coincides around the 89-day EMA, making it a key level to watch. A decisive breach below this support may open the doors for further downside towards the bullish gap around 24,200, which aligns with the 200DSMA. On the flip side, for bullish momentum to resume, a breakout above Friday’s high of 24,800 is essential. This would need to be followed by a move above the 20 and 50-day EMAs, placed around 24,900, to confirm the resumption of the primary uptrend," the Angel One analyst said.

According to Nagaraj Shetti of HDFC Securities, the near-term down trend of Nifty remains intact and the market is expected to slide down towards the 24,500-24,400 levels in the next few sessions. However, tomorrow's RBI's mid quarter policy outcome is expected to show clear directions for the market. Immediate resistance is placed at 24,800 levels.

LKP Securities' Rupak De said the current range is 24,400-24,850, and in the short term, the index is likely to remain within this band. Only a decisive move beyond this range might determine the next course of action for the market, he added.

Nandish Shah of HDFC Securities said the recent swing low of 24,535 is expected to serve as immediate support. On the upside, 24,785 and 24,950 are two key hurdles for Nifty.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