Stock Market Next Week: what to expect from Dalal Street (Starting august 4)
Markets Slump as August Derivatives Kick Off
Equity benchmarks dropped for a fifth straight week. Sensex slipped to 80,599.91 (‑0.72 %) and the Nifty ended at 24,565.35 (‑0.82 %) on Friday, August 1. Mid‑ and small‑caps fell sharply too, making this week’s start one of the roughest in months.
Key Trigger Events : –
1. RBI MPC Meeting (4–6 August)
The rescheduled MPC meeting has everyone watching RBI’s stance on liquidity, growth and inflation—markets are pricing in hopes for a mild rate cut. A dovish outlook could benefit rate-sensitive sectors like auto, housing, and NBFCs.
2. US Tariffs Take Effect (1 August)
Trump’s 25% reciprocal tariff on Indian goods came into effect on August 1, reversing earlier trade advantage. Indian exporters now face steeper charges than regional peers. The govt is exploring a retaliatory digital tax on US tech giants.
3. FII Sell-off Intensifies
FIIs have pulled **₹27,000 crore** in nine consecutive sessions, with momentum betting highest since early 2023. Nifty rollovers have dropped sharply while short positions soared—factor into elevated risk-off sentiment.
4. Q1 Earnings Season Disappoints
Over 900 companies reported results—many underwhelmed. Banking profits grew only ~2.7% YoY, while pharma names like Sun Pharma dragged down sector performance post-earnings.
5. Technical Weakness in Nifty & Bank Nifty
Nifty failed to hold its 200‑DMA and dropped below 24,600 support with high conviction. Analysts expect further downside toward the 24,400–24,450 zone unless there’s a technical rebound. Bank Nifty’s support rests at 55,150 with resistance at 56,000–56,500.
What This Means for You
| Factors | Investor Move |
|---|---|
| Policy Outlook | Wait on signs of dovish tone before buying rate‑sensitive stocks |
| Tariff Impact | Trim export‑heavy exposure; rotate to domestic demand sectors |
| FII Outflows | Focus on firms with strong balance sheets and pricing power |
| Technical View | Set stop‑loss around 24,400; rebalance if support breaks |
WynWealth Snapshot
August kicked off rocky. Exports, earnings, FII outflows, trade policy risk and weak technicals have all weighed on investor sentiment. That said, the RBI commentary, if dovish, could shift the bias quickly toward consumption, housing, and auto. Domestic-focused themes may outperform export-heavy names in the near term.
What to Watch Next
- Reaction to RBI’s MPC commentary on growth and liquidity
- FII flows and August derivatives positioning
- Q1 surprises from marquee names like Airtel, Tata Motors, SBI, LIC
- Global cues: Oil & gold sentiment, dollar strength
🔔 Call to Action
- Use WynWealth’s Market Mood Tool to capture sentiment cues in real time
- Deploy the Gainer‑Lag Screener to identify outliers amid volatility
- Follow us on Instagram for daily visual updates and expert threads
- Subscribe to the WynWealth Newsletter for upcoming sector deep dives and actionable ideas
Disclaimer: This report is for educational purposes only. Market data and analysis are based on conditions as of 1 August 2025. This is not investment advice. Consult a certified advisor before making decisions. Past performance is not indicative of future results.
