After weeks of pressure, the stock market bulls finally had reason to celebrate as Indian equities made a strong comeback in Monday’s session, August 11, with frontline indices ending the day nearly 1% higher, their biggest single-day jump since June 26, as investors took advantage of the recent sharp corrections to buy quality blue-chip stocks at reasonable levels.
The tariff tensions, tepid Q1 performance by India Inc., sustained selling by FPIs, and the absence of fresh domestic triggers pushed Indian stocks into six consecutive weeks of losses—the longest such streak in five years—dragging the Nifty 50 down over 7% from its recent peak and causing it to significantly underperform other markets.
While there have been multiple instances where the Nifty 50 began the week on a strong note only for the momentum to fade in the final sessions, the extent of today’s rally hinges on the outcome of the Donald Trump–Vladimir Putin talks in Alaska, which experts believe could mark a major positive development if they lead to an end to the Russia–Ukraine war.
They also noted that US sanctions on Russia may be withdrawn, and consequently, the penal tariff of 25% imposed on India for buying oil from Russia could also be reconsidered.
A positive outcome may further improve overseas investor sentiment, which has been weak as foreign investors have been pulling money out of Indian stocks at a rapid pace, with outflows hitting ₹14,000 crore in August so far.
The 50% tariffs from the Trump administration came at a time when Asia’s third-largest economy was striving to position itself as a global manufacturing hub and rebound from last year’s weak growth. The RBI has already factored in the impact of these tariffs on growth and trimmed its FY26 growth forecast slightly.
Many global brokerage firms have expressed concerns that the tariffs could hurt India’s growth, making these talks crucial in shaping future market direction. Investors also watch the other key developments that are lined up this week, including the US inflation data.
Trump’s initial 25% tariffs took effect last week, with an additional 25% scheduled for August 27. Experts believe both countries could reach a trade deal before then.
Nifty 50 Technical: Key support at 24,500 and 24,340
Nilesh Jain, Head of Technical and Derivatives Research Analyst (Equity Research), Centrum Broking, said the truncated week began on an upbeat note as the bulls staged a sharp rebound.
Nifty regained its 100-DMA, which aligns with the psychological mark of 24,500, now acting as the immediate support, with the next cushion at 24,340. He noted that the price structure indicates scope for a further pullback towards 24,750. Although the broader trend remains weak, he said the short-term bias has turned mildly positive, driven by a short-covering rally.
Rupak De, Senior Technical Analyst at LKP Securities, said, “The Nifty picked up right where it left off on Friday, but with an entirely different mood. Rising from the ashes, the index staged a spirited comeback, adding nearly 200 points through the day.”
The earlier breakdown now seems to have given way to a short-term pullback, as the market brushed aside recent weakness. “We’re not completely out of the woods yet, but Monday’s bounce from the recent low carries enough steam to power further gains. Immediate support lies at 24,337, with the next upside targets seen around 24,850 and 25,000,” he further stated.
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