Stock market today: India’s stock market indices moved slightly upward on Monday as gains in the metals and automobile sectors outpaced declines in information technology stocks, which fell due to concerns over global trade and disappointing U.S. economic indicators.
As of 12:51 IST, the Nifty 50 increased by 0.56% to reach 24,702 . 05 points, while the Sensex saw a rise of 0.44% to 80,957.97.
This increase follows a 1.1% decrease in the indices during the previous week, marking their fifth straight week of losses as the U.S. imposed high tariffs on numerous trading partners, including a 25% duty on India, which intensified concerns regarding global economic growth.
U.S. reports indicated job growth in July was weaker than anticipated, along with significant downward revisions for earlier months, which heightened expectations for a potential Federal Reserve rate cut in September.
Market Views – Vinay Rajani, Senior Technical and Derivative Analyst, HDFC Securities
FIIs positioning In the Index Futures Segment – Higher Possibility of a Short Covering by Them
FIIs’ long-to-short ratio in index futures at the beginning of the August series stood at extremely oversold level of 0.11, as against 0.61 in the last series. This is the lowest since 29 March 2023 (beginning of April 23 series). In other words, out of total positions of FIIS’ in the Index Futures segment, more than 90% is on the short side.
There are four instances (After March 2020) where FIIS long to short ratio at the beginning of the series stood at or below 0.15 (30-May-2024, 26-Oct-23, 29-March-2023 and 29-Sept-2022). If we were to see performance of Nifty 50 in the subsequent series, Nifty 50 had moved up in all the four series and average gain of Nifty 50 was over 7%. Therefore, considering the historical evidence, there are higher possibilities of a short covering by FIIS in the Index Futures segment in the days to come.
From the technical perspective, Nifty 50 is in to continuation of a down trend. Immediate resistance for index is seen near 24,950. Short term support for the index is seen in the band of 24,400-24,500, followed by 24,170, where 200 DEMA, Unfilled Gap and 38.2% retracement of the entire rise started from April 2025 bottom to recent swing high of 25669 is placed. The Nifty Smallcap100 index has also reached very near to its 200 DEMA support, which could lead to bounce in the short term.
Nifty Strategy: Considering the oversold scenario, we see limited downside in the index with strong support seen near 24,400 and 24,200. We cannot rule out the possibility of pullback in the positional down trend. However, pullback should be utilized to lighten the long commitments.
Buy Nippon India Silver ETF(107) | Target Rs. 115,120| Stop-loss Rs. 102
Silver as a commodity has registered healthy running correction from the recent swing high in international as well as domestic markets. Primary trend of the underlying has been bullish with higher tops and higher bottoms. Underlying is also placed above all key moving averages, which further confirms the positional up trend.
Buy ICICI Prudential Nifty Metal ETF(9.25): | Target Rs. 10,11| Stop-loss ₹8.75
Nifty Metal Index has registered healthy running correction from the recent swing high. In international markets, we have seen bullish breakouts in Iron ore commodity. Rising iron ore prices indicates higher demand of iron ore and steel, which could benefit metal companies globally. Nifty Metal index has reached near to its long term support of 200 DEMA.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
