Index Update: The Nifty 50 dropped 255.70 points to close at 24,712.05, as selling pressure reinforced bearish sentiment. Technically, the index trades below its 50-SMA, now acting as dynamic resistance, limiting upside potential. A move above this level could signal recovery. Immediate support lies at 24,450.70, aligned with a falling trendline. Sustaining this zone is crucial to avoiding further downside, while weakness persists unless the index reclaims key resistance levels.

Macro Update: The U.S. has signaled a 50% tariff on Indian goods effective August 27, 2025, escalating trade tensions. The move, tied to Washington’s pressure on Russian trading partners, poses risks to India’s exports and broader global trade flows. PM Modi pledged strong support for small entrepreneurs and farmers, underscoring domestic resilience amid rising geopolitical and economic uncertainty.

Top Market Movers: On Tuesday, Eicher Motors Ltd (NSE: EICHERMOT) led the gainers with a 2.68% increase, closing at INR 6,151.00 followed by Hindustan Unilever Ltd (NSE: HINDUNILVR) up 2.32% at INR 2,692.60, and Maruti Suzuki India Ltd (NSE: MARUTI) which rose 1.81% to INR 14,714.00. On the downside, Shriram Finance Ltd (NSE: SHRIRAMFIN) saw the largest drop, falling 4.21% to INR 594.70 followed Sun Pharmaceutical Industries Ltd (NSE: SUNPHARMA) down 3.40% to INR 1,600.30 and Tata Steel Ltd (NSE: TATASTEEL), which dropped 2.88% to INR 155.03.

Commodity Update: The dollar and U.S. Treasuries weakened Tuesday after President Trump’s unprecedented dismissal of Fed Governor Lisa Cook, raising concerns over central bank independence. The move pressured the dollar against the yen and euro. Gold rose 0.16% to $3,422.90, silver slipped 0.01% to $38.70, copper gained 0.70% to $9,848.35, and Brent crude fell 0.44% to $67.92. Oil eased as markets weighed U.S. sanctions on Russia against Ukraine conflict risks and rate-cut hopes.

Our Stance: Market sentiment remains cautious as U.S.-India trade tensions and political uncertainty add pressure. Nifty’s inability to reclaim resistance zones highlights downside risks, though selective stock strength provides some support. Commodity trends remain mixed, signaling near-term volatility and the need for disciplined positioning with a focus on resilient sectors.

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