Index Update: The Nifty 50 closed at 24,565.35, down 0.82%, extending its bearish consolidation phase below the 50-day Simple Moving Average of 25,051.87. With the RSI at 36.01, momentum remains weak, pointing to continued downside pressure. Key support is placed at 24,400, and a break below this level could trigger further declines. On the upside, resistance is near 25,000; a sustained move above it may offer short-term relief and potentially open room toward the 25,400 mark.

Macro Update: India’s Manufacturing PMI for July 2025 was revised to 59.1, reflecting the fastest expansion since March 2024. Strong demand drove sharp gains in new orders and output, though hiring slowed and business sentiment weakened. Rising input costs signaled renewed inflationary pressure, despite only modest increases in selling prices.

Top Market Movers: On Friday, Trent Ltd (NSE: TRENT) led the gainers with a 3.23% increase, closing at INR 5,180.00 followed by Asian Paints Ltd (NSE: ASIANPAINT) up 1.46% at INR 2,431.00, and Hindustan Unilever Ltd (NSE: HINDUNILVR) which rose 1.29% to INR 2,431.00. On the downside, Sun Pharmaceutical Industries Ltd (NSE: SUNPHARMA) saw the largest drop, falling 4.51% to INR 1,629.70 followed Dr Reddy's Laboratories Ltd (NSE: DRREDDY) down 3.91% to INR 1,220.60 and Cipla Ltd (NSE: CIPLA), which dropped 3.33% to INR 1,502.80.

Commodity Update: The U.S. dollar is on track for its strongest weekly gain in nearly three years, bolstered by President Donald Trump's announcement of new tariffs on multiple trade partners. The move raised concerns over global demand, particularly for oil. In commodities, gold dipped 0.28% to $3,339.65, silver fell 0.18% to $36.07, copper rose 0.19% to 9,629.5, and Brent crude declined 0.11% to $71.65 per barrel.

Our Stance: The near-term outlook remains cautious amid continued weakness in the Nifty 50 and rising inflationary pressures. Despite robust manufacturing data, global trade tensions and sharp sectoral declines, particularly in pharmaceuticals, suggest a defensive approach is prudent. Preference may tilt toward quality stocks with strong pricing power and earnings stability.

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