Indian benchmark indices, Sensex and Nifty 50, are expected to open lower on Thursday as the additional 25% US tariffs on Indian exports have come into effect, taking the cumulative duty to 50%.
Gift Nifty trends also point to a weak start for the domestic market, trading around 24,665—about 66 points below the previous close of Nifty futures.
Indian markets were closed on Wednesday, August 26, on account of Ganesh Chaturthi. On Tuesday, equities ended sharply lower, with the Nifty 50 closing below the 24,800 mark. The Sensex dropped 849.37 points, or 1.04%, to settle at 80,786.54, while the Nifty 50 declined 255.70 points, or 1.02%, to 24,712.05.
Sensex Outlook
Sensex formed a long bearish candle on the daily charts and is showing a lower top formation on intraday charts, which signals a negative bias.
The intraday market texture remains weak, but a fresh selloff could occur only if the index breaks below 80,500. Below this level, Sensex may retest 80,200–80,000. On the upside, a move above the 20-day SMA or 81,000 could trigger a pullback toward 81,300–81,500.
Nifty OI Data
In the derivatives segment, the highest Nifty Call Open Interest (OI) is at 24,800, while the highest Put OI is concentrated at 24,500. This indicates strong resistance around 24,800, and a sustained close above this level will be crucial for a bullish reversal.
Nifty 50 Outlook
Nifty 50 formed a large bearish candle on the daily chart and slipped below the 50-DEMA at 24,840, signaling fresh weakness.
A long bearish candle emerged on the daily chart after a minor bounce in the previous session. This shows strong selling pressure from the recent lower top at 25,150. The opening upside gap from August 18 has been breached on the downside, and the index failed to recover from the gap support near 24,700—an unfavorable sign.
According to Zylostar, the short-term trend for Nifty remains weak, with key supports at 24,600 and 24,400. However, a sustained bounce above 24,900 could trigger short covering in the near term.
