Image Source: Mint
As trading opens on Friday, August 29, 2025, Indian equity markets remain on edge following a sharp two-day selloff triggered by geopolitical trade tensions and foreign investor outflows. The Nifty 50 index closed Thursday at 24,500.90, down 211.15 points or 0.85 percent, while the Sensex shed 705.97 points to settle at 80,080.57. The broader market witnessed a synchronized decline, with midcap and small-cap indices falling 1.2 percent and 1.4 percent respectively.
The steep 50 percent tariff imposed by the United States on select Indian exports has rattled investor sentiment, particularly in export-heavy sectors such as textiles, gems and jewellery, marine products, and leather goods. Meanwhile, domestic institutional investors (DIIs) have stepped in as net buyers, providing some cushion against persistent foreign institutional investor (FII) selling.
Key Highlights from Thursday’s Market Action
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Nifty 50 closed at 24,500.90, down 0.85 percent
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Sensex ended at 80,080.57, down 0.87 percent
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Sectoral indices including FMCG, Power, Banking, Realty, IT, and Telecom declined 1–2 percent
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Consumer Durables was the only sector to end in the green
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FIIs sold ₹6,500 crore worth of equities, while DIIs bought ₹7,060 crore
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Market breadth remained weak with declining stocks outnumbering gainers by 3:1
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Trade Setup for Friday: Technical and Fundamental Cues
Nifty 50 Outlook
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Technical analysts suggest the underlying trend remains negative
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Key support levels to watch: 24,300–24,250 (previous swing lows and 200-day EMA)
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Resistance zone: 24,700–24,750, where pullbacks may face selling pressure
Bank Nifty View
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Formed a bearish candle with lower highs and lows, indicating continued weakness
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Breakdown below 54,900–56,100 range signals downside extension
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Support seen at 53,500–53,000, coinciding with 200-day EMA and May lows
Macro Triggers
Investors await US Q2 GDP data and initial jobless claims later today
Domestic policy support around GST reforms and import duty relaxations may offer resilience
Extension of cotton import duty exemption until December provides relief to garment exporters
RIL AGM: Market-Watch Event of the Day
Reliance Industries Ltd. will hold its Annual General Meeting today, with investors keenly tracking announcements on Jio Financial Services, green hydrogen, and retail expansion
Any updates on 5G monetization, semiconductor foray, or strategic partnerships could influence stock movement
RIL shares have been range-bound ahead of the AGM, with analysts expecting a breakout post-event
Six Stocks to Watch: Buy or Sell Recommendations
AIIL (Allied Industries India Ltd) – Buy
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Strong breakout above ₹320 with volume confirmation
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Target: ₹360, Stop Loss: ₹325
UNO Minda – Buy
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Bullish continuation pattern, supported by auto sector strength
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Target: ₹740, Stop Loss: ₹705
TD Power Systems – Buy
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Sustained uptrend with RSI above 60
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Target: ₹265, Stop Loss: ₹248
Thomas Cook – Sell
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Breakdown below ₹85 with weak momentum
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Target: ₹78, Stop Loss: ₹88
Kaveri Seeds – Buy
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Positive monsoon outlook supports agri-input demand
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Target: ₹620, Stop Loss: ₹585
OnMobile Global – Sell
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Bearish divergence on daily charts
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Target: ₹68, Stop Loss: ₹74
Conclusion
Friday’s trade setup is shaped by a mix of global headwinds and domestic resilience. While the US tariffs have introduced short-term uncertainty, supportive policy measures and strong DII flows may help cushion the downside. All eyes will be on the RIL AGM for directional cues, while traders should remain cautious and focus on technically sound setups amid heightened volatility.
Sources: LiveMint, Times of India, BizzBuzz, NSE India
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