Stock Market Outlook: Sensex, Nifty May Face More Pressure; Further Downside Likely If 24,250 Support Breaks

With the Nifty 50 and Gift Nifty slightly down in the last trading session, Indian markets are expected to open cautiously on Friday within a narrow range unless new triggers arise. However, continued Foreign Institutional Investor (FII) net selling may limit upward movement, while Domestic Institutional Investor (DII) buying could provide some stability.

Stock Market Outlook For August 29, 2025

On August 28, Indian equity markets ended in the red for the second consecutive trading session, weighed down by broad-based selling across key sectors. The Nifty 50 settled at 24,500.90, down 211 points or 0.85%, while the Sensex closed at 80,080.57, marking a decline of 706 points or 0.87%.

Nifty50 Top Gainers and Top Losers: Sector-wise Stocks Performance

Among the top laggards in the Nifty were Shriram Finance, HCL Technologies, TCS, Power Grid Corporation, and Infosys, which posted significant losses. On the flip side, Titan Company, Adani Enterprises, Coal India, Reliance Industries, and Hero MotoCorp managed to buck the trend and closed with gains.

The decline was broad-based, with most sectoral indices ending in the red. Sectors such as Banking, IT, Realty, FMCG, and Telecom each slipped between 1% to 1.1%. The only sector that showed resilience was Consumer Durables, which ended in positive territory.

In the broader market, the BSE Midcap index fell 1.1%, while the Smallcap index declined 0.9%, reflecting pressure across mid and small-cap stocks as well.

Share Market Cap Erosion: Rs 4 Lakh Crore Wiped Out

The total market capitalization of companies listed on the BSE dropped sharply from approximately Rs 449 lakh crore in the previous session to around Rs 445 lakh crore. This sharp fall translated into an estimated Rs 4 lakh crore loss for investors in a single trading day.

Sensex, Nifty Prediction Today

Religare Broking's Ajit Mishra believes that the recent implementation of a 25% additional US tariff has increased pressure on the Indian stock markets. With no major domestic triggers on the horizon, he expects that global developments will continue to influence market direction in the near term.

Nifty50 Technical Outlook; What Traders Are Expecting Today?

From a technical perspective, the Nifty 50 has slipped below its medium-term support level at the 100-day Exponential Moving Average (EMA) of 24,600, which is a bearish signal. This breakdown suggests that the market may continue to correct further in the short term.

The next key support zone for Nifty is seen between 24,250 and 24,350, an area that aligns with both the previous swing low and the long-term 200-day EMA. If this zone is breached, it could indicate deeper downside risks.

On the upside, any recovery may face resistance in the 24,650 to 24,800 range. This area, which previously acted as a support level, is now expected to act as a resistance zone, potentially capping short-term gains.

India's Economic Growth Projections

According to EY Economy Watch's August report, despite facing a hefty U.S tariff of 50%, India is projected to become the world's second-largest economy by purchasing power parity (PPP) by 2038 with a GDP of $34.2 trillion. This forecast highlights India's resilient growth trajectory and structural advantages that are expected to outweigh external trade restrictions over time.

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