Nifty 50 Breaks Below 100 EMA: As the additional 25% tariff imposed by US President Donald Trump on India came into effect, the Indian stock market slipped into meltdown mode.
👉 The levy, targeting purchases of Russian oil, is over and above the existing 25% duty on Indian exports to the US — effectively raising tariffs to 50%.
This double whammy dented investor sentiment, triggering a sharp fall in indices for the second consecutive session on August 29.
🔻 Market Recap: Sensex & Nifty Tumble
- Sensex: Fell 706 points (-0.87%), closing at 80,080.57
- Nifty 50: Dropped 211 points (-0.85%), ending at 24,500.90
- 📊 Importantly, Nifty breached its 100-day EMA, flashing bearish signals.
🐻 Nifty Below 100 EMA: Short-Term Pain Ahead?
Analysts believe Nifty’s breakdown below its medium-term support at 24,600 (100-EMA) could allow bears to stay in control.
Key Analyst Views:
🔹 Rupak De, Senior Technical Analyst (LKP Securities)
- Bears are in the driver’s seat after the 100-EMA breakdown
- Nifty slipped out of its recent consolidation range, indicating increasing weakness
🔹 Bajaj Broking
- Nifty formed a second big bearish candle with lower highs & lower lows
- Index closed below the 100-EMA, confirming continuation of the decline
⚠️ To reverse the downtrend, the index must form higher highs and higher lows on daily charts. Until then, bearish pressure may persist.
💡 However, a positive divergence on hourly charts hints at a possible short bounce-back before further fall.
👉 Strategy: Analysts suggest shifting from “buy on dips” → “sell on rise”, with a light exposure approach in the current volatility.
📌 Nifty Technical Levels to Watch
- Resistance Zones:
🔼 24,650 – 24,850 (LKP Securities)
🔼 24,900 (Bajaj Broking) - Support Zones:
🔽 24,480 – 24,300 (LKP Securities)
🔽 24,400 – 24,350 (Immediate support, Bajaj Broking)
If Nifty holds above 24,400, expect a consolidation between 24,400 – 24,900.
If it breaks below 24,350, decline may accelerate to 24,000 – 23,800, a zone combining the 52-week EMA and major breakout support.
⚠️ Disclaimer
This article is for educational purposes only. Views expressed are those of analysts and broking firms, not ICCAN. Investors should consult with certified financial experts before making decisions, as market conditions can change rapidly.
