Trade Setup for August 29: Nifty Support at 24,400-24,350; US Tariffs Weigh on Investor Sentiment
The sharp decline in the NSE Nifty 50 index reflects continuation of the selling pressure on the index, according to analysts. The index has been under pressure due to various factors, including the imposition of US tariffs, which has weighed on investor sentiment.
Nifty Support Levels
The Nifty has an immediate support base placed at 24,400-24,350 levels, being the confluence of the recent lows and the key retracement area. The index holding above the same will lead to a consolidation in the range of 24,400-24,900, according to Bajaj Broking Research.
Failure to hold above the support levels will signal acceleration of decline towards 24,000-23,800 levels, being the confluence of the 52 weeks EMA and the previous major lows and the previous major breakout area.
Bank Nifty Outlook
The Bank Nifty has formed a sizable bear candle with a lower high and a lower low, signaling continuation of the corrective decline, as per analysts. The index has recently generated a breakdown below the last three weeks range (54,900-56,100), highlighting an extension of the decline.
Going ahead, failure to move above 55,000 will keep the bias down and will open downside towards 53,500-53,000 levels in the coming sessions, according to Bajaj Broking Research. Key support is placed at 53,500-53,000 levels, being the confluence of the 200 days EMA and the low of May 2025.
Market Performance
The NSE Nifty 50 ended 211.15 points or 0.85% lower at 24,500.9, while the BSE Sensex closed 705.97 points or 0.87% down at 80,080.57. The Indian rupee closed 5 paise stronger at 87.63 a dollar on Thursday.
Investor Sentiment
The imposition of US tariffs has weighed on investor sentiment, leading to a decline in the Nifty and Sensex. The tariffs are expected to have a negative impact on the Indian economy, particularly on the export-oriented sectors.
However, the Indian government has taken steps to mitigate the impact of the tariffs, including the imposition of retaliatory tariffs on US goods. The government has also announced measures to support the export-oriented sectors, including the provision of subsidies and incentives.
What to Expect
Going ahead, the Nifty is expected to consolidate in the range of 24,400-24,900, according to Bajaj Broking Research. However, failure to hold above the support levels will signal acceleration of decline towards 24,000-23,800 levels.
Investors are advised to remain cautious and avoid taking any fresh positions in the market. They should also keep a close watch on the global economic trends and the impact of the US tariffs on the Indian economy.
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