The Indian stock market experienced a shaky start today, August 7, 2025, with both the Sensex and Nifty indices showing initial declines. The Sensex fell by 186 points, while the Nifty was trading below 25,550 in the opening trade. This downturn was primarily influenced by losses in oil and metal stocks, coupled with global trade tensions.

Several factors contributed to this cautious market sentiment. Escalating global trade tensions, particularly the US President's decision to impose an additional 25% tariff on Indian imports, have significantly impacted investor confidence. This move, citing India's alleged indirect import of oil from Russia, has effectively doubled the total import duties on Indian goods to a steep 50%.

The trends on Gift Nifty also indicated a negative start for the Indian benchmark index. The Gift Nifty was trading around the 24,594 level, a discount of nearly 40 points from the Nifty futures' previous close.

On the sectoral front, auto, metal, and oil & gas stocks opened in the red. In the broader market, both midcap and smallcap indices also edged lower in early trade.

Technically, the Sensex continues to show signs of weakness, forming a lower top pattern and a small bearish candle on daily charts, which is seen as a negative signal. Analysts anticipate further consolidation or downside movement if the index fails to find fresh positive triggers. Similarly, Nifty 50 remains under pressure, exhibiting a lower highs-lower lows structure, signaling ongoing weakness. The index is currently trading below all key moving averages, with momentum indicators showing further deterioration.

However, oil prices edged higher on Thursday, snapping a five-day losing streak, as signs of steady U.S. demand offered support. A sharper-than-expected decline in U.S. crude inventories also boosted sentiment.

Trading Economics global macro models suggest that Crude Oil is expected to trade at 68.52 USD/BBL by the end of this quarter and estimate it to trade at 72.43 in 12 months.

Despite the overall negative sentiment, there were some positive movements in specific stocks. Shares of Trent gained 1% after posting a 9% YoY increase in consolidated net profit. Nuvama Professional Clients Group recommended buying Asian Paints, Cummins India, and Eicher Motors.

Investors are closely monitoring key levels for the Nifty, with immediate resistance at 24,671, 24,783 and 24,902, and support at 24,547, 24,401, and 24,230. The 24,400 – 24,700 range is considered critical for Nifty's near-term directional move, with a decisive breakout or breakdown potentially setting the tone for the next leg of the trend.

Overall, the Indian stock market is experiencing a period of volatility influenced by global trade tensions, domestic monetary policy, and sector-specific performances. Investors are advised to remain cautious and closely monitor market developments.