Nifty Poised for a Bullish Monday – What’s Driving It?
Nifty Poised for a Bullish Monday – What’s Driving It?
1. Positive Fed Signals Lift Global Sentiment
At the Jackson Hole Symposium, U.S. Federal Reserve Chair Jerome Powell signaled the possibility of interest rate cuts as soon as September, sending a wave of optimism through global markets. Wall Street ended the session strongly, which in turn buoyed Asian and European indices.
2. Nifty Eyes a Gap-Up Opening
Driven by this dovish outlook, the Indian markets are expected to open strong with a gap-up on Monday, reflecting the positive global sentiment. GIFT Nifty futures similarly hinted at a rebound following the speech .
3. Technical Outlook: Resistance vs Support
Technically, Nifty is tracking just above key levels; support lies around 24,800–24,850, while resistance looms at 25,000–25,150. A breakout above 25,150 could pave the way toward 25,250 or even 25,400, but failure to breach might lead to sideways consolidation.
4. Domestic Catalysts & Risks
Beyond global cues, domestic factors such as expectations around GST rate rationalisation and upcoming economic data PMIs, IIP, GDP will contribute to market direction , . Yet, markets also remain cautious—FIIs continue to offload Indian equities ₹25,564 crore so far in August, and tariff concerns linger .
5. Balanced Weekend Outlook
All told, markets appear set for a bullish Monday open, backed by dovish Fed hints. However, upside may be capped by resistance levels and domestic headwinds. Traders should stay alert to both technical triggers and macro developments.
This content is for educational and knowledge purposes only and should not be considered as investment or Trading advice. Please consult a certified financial advisor before making any investment or Trading decisions.
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Q1: Why is Nifty expected to gap up on Monday?
Because Powell’s dovish tone at Jackson Hole raised expectations of a U.S. rate cut, global markets rallied—boosting sentiment and prompting a positive start for Indian indices
Q2: What are the key technical levels to watch?
Support: 24,800–24,850 Resistance: 25,000–25,150 A break above 25,150 could open further upside; failure may lead to range-bound movement .
Q3: What domestic factors could influence the week's trend?
Expectations around GST changes, domestic data like PMI and GDP, and macro factors like FII flows and tariff news will matter.
Q4: Could RBI action be triggered by Fed moves?
Yes—some analysts suggest that a U.S. rate cut may give the RBI room to cut rates too, potentially in its upcoming policy review
Q5: What’s the risk scenario if the gap up fails?
If resistance holds, markets may consolidate or drift lower toward support. A cautious, stock-specific strategy with strict stop-losses is advisable until a clear breakout appears .
Q6: What should traders do this weekend/Monday?
Be prepared for a bullish open, but don’t be overconfident. Use buy-on-dip setups if Nifty holds above 24,800. Monitor key levels: Upside breakout zone: 25,150 Downside risk area: below 24,800 Stay alert to global cues, domestic tariffs, FII movement, and economic data.
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