Our morning bulletin anticipated a range-bound session with a positive bias, driven by favorable GDP data and GST reform hopes. While the market did open higher, it failed to sustain momentum, succumbing to selling pressure in the final hours.
Bank Nifty: The index remains weaker, having broken key moving averages.
India VIX: The volatility index remained relatively stable, suggesting that while there was expiry-related churn, widespread panic was absent.
DII Net Activity: +₹4,344.93 Crore [Provisional] The market breadth was positive, with more stocks advancing than declining, indicating resilience in the broader market beyond the top 50 names.
Open Interest (OI): Open Interest is the total number of outstanding derivative contracts (like futures or options) that have not been settled.
Timestamp (IST): 17:43
Our morning bulletin anticipated a range-bound session with a positive bias, driven by favorable GDP data and GST reform hopes. While the market did open higher, it failed to sustain momentum, succumbing to selling pressure in the final hours. This was primarily driven by the inaugural Tuesday expiry for Nifty F&O contracts, which induced significant volatility in heavyweight financial stocks. The initial optimism surrounding GST rate cuts did, however, provide a strong tailwind for the FMCG sector, which outperformed significantly, aligning with our morning view.
Indian benchmark indices surrendered early gains to close in the red on the first-ever Tuesday F&O expiry for Nifty 50 contracts. After a positive start, late-session unwinding in banking and financial stocks dragged the headline indices lower. Broader markets, however, showed resilience, with mid-cap and small-cap indices ending in positive territory.
A clear divergence was visible today. While financial stocks, which have a high weightage in the Nifty 50, saw significant selling pressure due to the unwinding of derivative positions, cyclical sectors like FMCG and Realty showed strength. This highlights a market being driven more by technical, structural factors (like the new expiry day) rather than a monolithic fundamental trend.
Today's session showcased a classic rotation out of high-beta financials and into defensive and consumption-themed sectors. The FMCG sector's outperformance, supported by robust volumes, suggests that investors are positioning themselves for potential consumption-boosting government policies. The advance-decline ratio remained positive, indicating underlying strength in the broader market despite the headline index decline.
There were no major domestic economic data releases today. Market focus remains on the upcoming GST Council meeting scheduled for September 3-4.
Foreign Portfolio Investors (FPIs) were net sellers, while Domestic Institutional Investors (DIIs) continued their buying spree, providing a cushion to the market.
a. Nestle India: Showed strong upward momentum (closed up 2.22%) on high volume, breaking out on hopes of GST cuts. Could see continued interest. b. Power Grid: A top Nifty gainer (closed up 2.20%) with consistent buying interest. It is trading near its 52-week high, showing strong relative strength. c. Mahindra & Mahindra: Declined on reports of a potential GST hike on luxury EVs. Remains a stock to watch for further developments on this news. d. Reliance Industries: Gained about 1% after a target price upgrade, lifting the energy sector. Its performance will be key for the index's direction.
e. Amanta Healthcare: With its IPO subscription seeing strong demand and a GMP of ~9.5%, it will be on the radar for its listing day performance.
Global market sentiment remains mixed, with investors cautious about potential US tariffs on Indian goods. Domestically, the market is keenly awaiting the outcome of the GST Council meeting, which is expected to be the next major trigger.
Open Interest (OI): Open Interest is the total number of outstanding derivative contracts (like futures or options) that have not been settled. For options traders, high OI at a particular strike price (like the 25,000 Call for Nifty) often indicates a point of strong resistance or support, as many market participants have a vested interest at that level. A change in OI can signal shifts in market sentiment.[22]
Today’s session was a testament to the new market dynamics brought about by the shift in the Nifty expiry day. While the headline numbers show a modest decline, the underlying sectoral churn tells a more nuanced story of rotation into defensives.
What are your thoughts on the new Tuesday expiry? Do you think it will lead to more volatility or better hedging opportunities? Let us know your views! All provisional data points will be reconciled in our morning update.
Here are two key charts from today's session:
Disclaimer: This newsletter is for informational and educational purposes only and does not constitute investment advice. Data marked as [Provisional] is subject to revision.
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 Tuesday, 2 September 2025, 8:57 PM IST.
Foreign institutional investors turned net buyers after recent selling, purchasing ₹161.84 crore worth of shares, while DIIs remained aggressive with net buying of ₹4,492.26 crore on October 15.
FIIs bought ₹45,960.02 cr of Indian equities this week — 615.28% above their 4-week average of -₹8,919.37 cr. Nifty rose 8.58% and closed at its weekly high, back above both its 25-week and 200-day averages. It did this while the S&P 500 fell 2.68%, the Nikkei 9.25% and Brent 16.42%.
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.
