selective Financial, Defense, and Banking stocks registered profit-taking at higher levels
Shrikant Chouhan,
Head Equity Research,
Kotak Securities
Mumbai, August 12, 2025: Today, the benchmark indices experienced a volatile trading session. After a roller coaster activity, the Nifty ends 98 points lower, while the Sensex was down by 369 points. Among sectors, intraday buying was observed in Pharma and Media stocks, while selective Financial, Defense, and Banking stocks registered profit-taking at higher levels. Technically, after an early morning intraday rally, the market faced resistance near 24,700/81000 and reversed sharply. From the day's highest point, the market shed over 225/700 points.
We are of the view that the current market texture is non-directional; hence, level-based trading would be the ideal strategy for day traders. On the higher side, 24,570/80500 would act as a immediate resistance zone. Above this level, the market could bounce back up to 24,700-24,775/81000-81200. On the lower side, below 24,420/80000, selling pressure is likely to accelerate. Below this level, the market could retest the levels of 24350-24250/79800-79500.
Gaurav Garg, Lemonn Markets Desk, adds:
Indian equity benchmarks reversed early gains on Tuesday, closing lower as selling pressure intensified in the final hour amid weak global cues and caution ahead of key economic data. The Sensex, which had risen 394 points in early trade to touch 80,997.67, ended 368.48 points or 0.46% lower at 80,235.59. The Nifty, after hitting an intraday high of 24,702.60, slipped below the 24,500 mark. Weakness in Bajaj Finance, Grasim Industries, ETERNAL, Bharat Electronics, and Hindalco Industries—down up to 2%—dragged the indices, while market breadth remained slightly positive with 1,945 shares advancing against 1,493 declines.
The downturn was driven by multiple factors, including investor caution ahead of the August 15 Trump-Putin meeting in Alaska, which could have significant geopolitical and trade implications. Traders also awaited India’s July retail inflation figures and the US CPI data, both critical for monetary policy expectations. Foreign Institutional Investors extended their selling streak, offloading shares worth ₹1,202.65 crore, while a 0.33% rise in Brent crude prices added to inflation worries. The India VIX rose over 1% to 12.35, reflecting higher market nervousness, and weak cues from Asian and US markets further dampened sentiment. Technically, 24,590 to act as a key resistance level for the Nifty, with support near 24,450, suggesting that sustained trade below these levels could lead to deeper corrections.
