Indian equity markets are poised to continue their downward slide for the third consecutive session, as investor sentiment takes a hit from U.S. President Donald Trump’s announcement of an additional 25% tariff on Indian goods. The new levy, which takes total duties on some items to 50%, has rattled market confidence and triggered a sell-off in key indices.

Despite a 21-day window before the new tariffs take effect, allowing room for possible negotiations, domestic markets remain under pressure. As of 7:45 p.m. IST on Wednesday, the Gift Nifty was trading at 24,552—down 0.32%, indicating a weak start for the next session.

Market Recap and Investor Activity

On August 6, benchmark indices closed lower after a volatile session, with sentiment further weighed down by the Reserve Bank of India’s Monetary Policy Committee (MPC) decision, which failed to offer a clear positive trigger.

Foreign Portfolio Investors (FPIs) sold Indian equities worth ₹4,999 crore, while Domestic Institutional Investors (DIIs) stepped in to buy shares worth ₹6,794 crore, according to provisional data from the NSE.

Technical View: Nifty and Sensex

The Nifty remains locked in a narrow consolidation range between 24,500 and 24,750. Analysts note that a clear breakout on either side will determine the market’s next directional move. Key support lies in the 24,500–24,535 zone, with a breakdown potentially opening the door to a decline toward 24,300–24,250. On the upside, immediate resistance is seen at 24,760, aligning with the 10-day EMA.

The Sensex mirrors a similar trend, with choppy trades and heightened caution among investors due to geopolitical and trade-related uncertainties.

Bank Nifty Outlook

According to Dhupesh Dhameja of SAMCO Securities, the Bank Nifty index is still struggling to establish a firm recovery. Despite a Bullish Harami pattern on the daily chart, a reversal would only be confirmed if the index closes above 55,700. Resistance levels are marked at 55,900 (10-day EMA) and 56,200 (20-day EMA), while a drop below 55,000 could push the index down to 54,500–54,300.

Volatility & Sentiment Indicators

The India VIX, which measures market volatility, edged up by 2.11% to settle at 11.96. Despite looming macroeconomic triggers, volatility remains relatively subdued, indicating that the broader market is pricing in consolidation rather than panic.

Meanwhile, the Put-Call Ratio (PCR) has declined sharply from 0.72 to 0.60, signaling growing bearish sentiment and increased activity from call sellers.

Image Source: Getty Images
Image Credit: Respective Owner