Indian stock markets began the trading day on a positive note, with both the Sensex and Nifty showing upward movement. The BSE Sensex was trading around 80,128, gaining 319 points, or 0.40 percent. Simultaneously, the Nifty 50 index reached 24,529, marking an increase of 102 points, or 0.42 percent. This positive performance is attributed to better-than-expected Q1FY26 GDP growth data.
In the broader market, the Nifty MidCap index experienced a gain of 0.70 percent, while the Nifty SmallCap index rose by 0.54 percent.
Global cues present a mixed picture. Asian markets displayed divergent trends, with Japan's Nikkei 225 down by 1.85 percent, while Hong Kong's Hang Seng Index surged by 2.13 percent. U.S. markets also closed mixed, with the Dow Jones Industrial Average down 0.20 percent and the Nasdaq Composite up 0.10 percent.
On September 1, 2025, the Gift Nifty futures were trading at 24,598.50, up 20 points or 0.08% from the previous close, suggesting a slightly positive opening for the markets.
Developments in India-China relations and the U.S. court ruling on Trump's tariffs are under scrutiny by investors. The US Court of Appeals kept Trump's tariffs in place, impacting major trading partners. Market participants are also monitoring August auto sales data and HSBC Manufacturing PMI.
On the commodity front, Gold and silver prices have hit record highs. Specifically, gold futures are up 0.40% to $3,530.20 per ounce, while silver futures are up 1.20% to $41.21 per ounce. Meanwhile, WTI crude oil is trading at $63.73 per barrel, down 0.44%.
The USD/INR pair is trading at 88.16, indicating a marginal weakening of the rupee against the dollar.
From a technical analysis perspective, the Sensex has formed a bearish candle on the weekly charts. According to Amol Athawale, VP Technical Research at Kotak Securities, the short-term outlook remains weak, with a fresh selloff possible if the 79,700 level is breached. However, a pullback rally could continue up to 81,000-81,300 if the index moves above 80,500.
The Nifty 50 declined 1.78% last week and 1.59% in August. Heavy Nifty Call Open Interest (OI) at 24,600–24,500 is expected to cap the upside, while Put OI at 24,400 may provide near-term support.
The Bank Nifty index declined 164.70 points on the last day, forming a bearish candle on the daily chart. Sudeep Shah, Head of Technical Research and Derivatives at SBI Securities, noted that the Bank Nifty is trading just above its 200-day EMA at 53,572.
Overall, the Indian stock market is exhibiting cautious optimism amid mixed global cues and technical signals.
