Today's themes centered on the impact of 50% US tariffs on Indian exports and monthly Nifty expiry dynamics. At close, markets aligned with our expectations of broad-based selling pressure, particularly in export-sensitive sectors.
Spot Rate: Trading around ₹84.10-84.15 range with mild depreciation pressure
Unusual Activity: Heavy put buying in IT names, call writing in banking stocks
Microstructure Observation: Despite negative sentiment, institutional buying emerged in final 30 minutes, suggesting value hunting at lower levels.
Titan Company: (+1.2%): Outperformed amid consumption concerns - momentum play
This research is for information and education only and is not investment advice. Figures may be provisional. Oorjita.AI and its authors may hold positions in securities mentioned. Please consult a SEBI-registered investment adviser before making investment decisions. Published Thursday, 28 August 2025, 6:00 PM IST.
Bearish Marubozu — A candlestick with no upper shadow and a minimal lower shadow. It signals relentless selling from open to close with zero buying recovery.
All four layers aligned bearish. A/D = capitulation breadth.
India's Monday session closed positively as Nifty 50 settled at 25,713.00 (+141.75 points, +0.55%) and Sensex rallied approximately 350+ points, led by PSU banks and financial stocks.
Today's themes centered on the impact of 50% US tariffs on Indian exports and monthly Nifty expiry dynamics. At close, markets aligned with our expectations of broad-based selling pressure, particularly in export-sensitive sectors.
Despite broad weakness, mid-cap resilience emerged in select pharma and consumer durables names, suggesting defensive rotation amid tariff uncertainties.
Money flow analysis indicates capital moving from export-dependent sectors (IT, Pharma, Textiles) to domestic consumption plays. Volume data shows 1.3x higher trading in Consumer Durables vs. 30-day average, signaling institutional repositioning.[4]
Microstructure Observation: Despite negative sentiment, institutional buying emerged in final 30 minutes, suggesting value hunting at lower levels.
Given high put-call ratio and ATM put concentration, consider Bull Call Spreads on quality names like HDFC Bank (buy 950 calls, sell 1000 calls) for September expiry - limited risk with tariff uncertainty.[8]
Open Interest represents total outstanding derivative contracts. High OI at specific strikes indicates strong support/resistance levels. Today's max OI at 24,500 put suggests strong institutional protection at current Nifty levels.
"How long will US tariff impact persist on Indian markets?"
Q: "Should I hold IT stocks through this tariff cycle?" A: Quality IT names may see 10-15% correction but possess pricing power and diversified revenue streams. Consider averaging down in leaders like TCS, Infosys over 2-3 months rather than panic selling.
Bar chart shows the percentage change of Nifty 50, Sensex, and Bank Nifty on August 28, 2025.
Line chart illustrating net trading flows for Foreign Portfolio Investors (FPI) and Domestic Institutional Infographic: "Tariff Impact Breakdown"
This newsletter is for information and education purposes only and does not constitute investment advice. 'Provisional' data is subject to revision by sources; reconciliation will be performed next day and archived. All source links and validation screenshots maintained for audit purposes. Risk Warning: Derivatives trading involves substantial risk. Past performance does not guarantee future results. Consult your financial advisor before making investment decisions. Thank you for subscribing to Oorjita FinAI Services. Together, we navigate the complexities of Indian capital markets with data-driven insights. Next Edition: Friday Morning Market Outlook - Focus on weekly F&O settlement and sector rotation themes.
