Where is the market headed?
The markets continued to remain weak today, clearly struggling under the pressure of fresh global tensions. Former U.S. President Donald Trump has again made headlines with more aggressive statements. In the last 24 hours, he claimed that Indian drone components were found in Russian drones used in the Ukraine war, and now, there’s talk of tariffs up to 250% on Indian pharma and other products. These decisions are expected to be finalized over the coming month, but the mere anticipation has cast a shadow over market sentiment.
As of today, the market seems to be walking a tightrope. Small and mid-cap stocks are dangerously close to their recent support levels. If these supports break, it could lead to a deeper correction and a longer period of consolidation before any recovery. That’s the big risk hovering over the market right now.
Market Overview
The Nifty index is inching closer to a key support zone around the 24,400 mark. The closing today was very close to the day’s low, suggesting no real strength during the session. It feels like we’re waiting for one final trigger—either a positive surprise that holds the market up or another blow that finally breaks support and pulls everything lower.
Nifty Next 50
Nifty Next 50 also closed near previous support levels, down 0.87%.
Nifty Mid and Small Cap
Midcaps were down 0.9% and Smallcaps dropped 1.2%, just below their last swing low.
Bank Nifty
Bank Nifty was the only one that remained flat, closing up just 0.09%.
GOLD
Even gold, which recently crossed ₹10,100 per gram, failed to break out above resistance and closed lower at ₹10,048, down 0.73% for the day.
Advance Decline Ratio
Market breadth was extremely poor. Declines heavily outnumbered advances right from the first hour, with nearly four falling stocks for every one that gained.
Heat Maps
The Nifty heat map reflected this pain clearly—nearly all major stocks were in the red, including Bajaj Finance, Jio Financial, TCS, Infosys, Wipro, HCL Tech, ITC, Nestle, Sun Pharma, and UltraTech Cement. Only a few names like HDFC Life and Asian Paints showed some green.
In the Nifty Next 50, Bosch was down a sharp 5.7%, while DLF, Adani Power, Britannia, Divi’s Lab, and Zydus Life were among those falling 4% or more. Others like Ambuja Cement, Bajaj Holdings, and Torrent Pharma also dropped. There were minor gains in stocks like Indigo, Pidilite, IOC, Canara Bank, and PFC, but nothing significant to change the mood.
Movers Of The Day
Britannia, despite posting a rise in Q1 profit, fell 4% as the numbers were below market expectations. The stock had already been sliding for the past few days, but today saw a bigger fall.
Canara Bank, on the other hand, gained after transferring unclaimed deposits to a specified fund, which may have triggered some investor interest.
Sectoral Overview
The sectoral view was also grim. Pharma was the worst performer, down 2%, followed by IT (down 1.74%), real estate (1.5%), media, MNCs, and FMCG. The only sector that stood out was PSU banks, which gained 0.59%.
Sector of the Day
Nifty Pharma Index
Pharma stocks have taken a big hit in the last five days, especially due to the U.S. tariff concerns. The index has dropped from around 23,000 to 21,500, with names like Divi’s Lab, Ajanta Pharma, Biocon, Ipca, and Zydus facing sharp cuts.
Nifty IT Index
The IT sector chart shows a steep fall since early July—from 39,000 to around 34,000—and it looks like the weakness isn’t over yet. Stocks like Coforge, Persistent Systems, Wipro, LTI Mindtree, and Mphasis led the way down.
