Stock Market Outlook: Sensex, Nifty Recovery Signals Bullish Intent Amid DII Buying; Key Resistance at 25,000

Dalal Street is expected to open on a cautious note today, Friday, August 8, 2025, as indicated by GIFT Nifty, which is down by 19.9 points or 0.08% in early trade. This signals a flat to slightly negative start for benchmark indices such as the Nifty 50 and the Sensex.

The subdued sentiment comes after a volatile trading session on Thursday, where domestic markets staged a late recovery despite global uncertainties and pressure from geopolitical tensions, including the recent hike in U.S. import tariffs on Indian goods.

Stock Market Outlook, 8 August: NSE Nifty, BSE Sensex Today

The NSE Nifty 50 index closed 21 points or 0.09% higher at 24,596, while the 30-share BSE Sensex ended the day at 80,623, gaining 79 points or 0.10%. Earlier in the session, the Sensex had plunged as much as 926 points to an intraday low of 79,811.29 before staging a robust comeback to hit a high of 80,737.55. Despite trading in the red for most of the day, late buying momentum helped lift the indices back into positive territory.

In the derivatives segment, GIFT Nifty was down 19.9 points or 0.08%, indicating a largely flat to slightly negative opening for Indian markets on August 8. The broader sentiment remains cautious due to persistent foreign selling.

The Indian stock market witnessed a sharp turnaround on August 7, 2025, as benchmark indices closed in the green, snapping a two-day losing streak. Despite a rocky start, with the NSE Nifty 50 falling as much as 0.94% during the day amid investor concerns over the doubling of U.S. import tariffs on India by President Donald Trump, the markets rebounded strongly in the final hour. This recovery was largely driven by renewed buying interest, which helped offset early losses.

According to provisional data from the National Stock Exchange, foreign portfolio investors (FPIs) remained net sellers for the 14th consecutive session, offloading Indian equities worth approximately Rs 4,997 crore. In contrast, domestic institutional investors (DIIs) continued to support the market, buying stocks worth Rs 10,864 crore for the 24th straight session.

Nifty Prediction Today: What Traders Are Expecting Today?

Technically, the Nifty 50 formed a bullish candlestick with a long lower shadow on the daily chart. This signals that market participants are actively buying on dips. However, the index continues to follow a lower highs-lower lows pattern, which reflects underlying caution in the market. Analysts believe that a sustained break above key resistance levels is needed to confirm a broader uptrend.

Looking at the weekly options data, the highest call open interest is at the 25,000 strike, with 53.4 lakh contracts, indicating a significant resistance level. This is followed by open interest at the 25,500 and 24,200 strikes. The 25,000 strike also saw the most call writing, with 28.82 lakh new contracts added. There was minimal call unwinding observed between the 23,900 and 25,500 strike levels, suggesting firm resistance across this range.

On the put side, maximum open interest was seen at the 24,500 strike, with 46.26 lakh contracts, suggesting a strong support level for Nifty. It was followed by the 24,000 and 24,400 strikes. The 24,500 strike also led in put writing, with 30.01 lakh contracts added. Similar to the call side, there was hardly any put unwinding between the 23,850 and 25,550 range, indicating strong base-building at lower levels.

Commenting on the potential impact of the U.S. tariff hike, Vikas Gupta, CEO of Omniscience Capital, noted that while the move could affect approximately $48 billion or 55% of Indian exports to the U.S., the overall impact on the broader Indian market may be limited.

"Initial analysis seems to impact around $48 billion or 55% of Indian exports to the US. This is not that significant as far as the total Indian market is concerned. Of course, the specific sectors impacted lose competitiveness and it will impact their revenues and earnings in the near term until they take mitigating actions," said the expert.

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