Market Outlook 1st August | A Resilient Fight, But Bears Had the Last Word
Good morning and welcome to your Market Outlook 1st August edition.
Despite an early sell-off triggered by the shockwaves of former US President Donald Trump’s 25% tariff announcement on Indian goods, the Indian markets made a brave attempt to recover through the session. However, the bounce faded by the close.
The Nifty 50 ended the day at 24,753.55, down 101.50 points (-0.41%), while the Sensex slipped 279.34 points. Pressure was broad-based — Nifty Bank shed 0.27%, Nifty IT fell 0.56%, and SmallCaps underperformed with a 0.86% drop, reflecting lingering caution across the board.
In today’s newsletter, we decode what this tariff shock means for the near-term setup, assess Nifty’s next technical levels, track major stock-specific triggers, bring you analyst-recommended stocks from technical screeners, and wrap up with a small-cap pick for the day.
Let’s dive into your complete Market Outlook for 1st August.
Index Technical View | Market Outlook 1st August
According to Equity Pandit, the broader market trend remains weak despite initial resilience shown after the tariff shock. Let’s break down the technical outlook for the key indices as we enter the trading session on 1st August.
NIFTY Outlook – Market Outlook 1st August
NIFTY closed at 24,768 and is currently in a negative trend. Equity Pandit suggests that traders holding short positions should continue to hold with a daily closing stoploss at 24,927. A close above this level would signal strength and allow for fresh long positions.
- Support Levels: 24,617 – 24,465 – 24,295
- Resistance Levels: 24,938 – 25,108 – 25,260
- Tentative Range: 24,977 – 24,559
SENSEX Outlook – Market Outlook 1st August
The SENSEX ended at 81,186 and also remains in a negative trend. As per Equity Pandit, short positions should be held with a daily closing stoploss of 81,672. A breakout above this resistance may open up room for upside movement.
- Support Levels: 80,653 – 80,120 – 79,545
- Resistance Levels: 81,761 – 82,336 – 82,869
- Tentative Range: 81,876 – 80,494
BANK NIFTY Outlook – Market Outlook 1st August
BANK NIFTY closed at 55,962 and continues to show weakness. Equity Pandit advises maintaining shorts with a stoploss at 56,512 on closing basis. A move above this level could lead to a trend reversal.
- Support Levels: 55,537 – 55,113 – 54,679
- Resistance Levels: 56,396 – 56,831 – 57,255
- Tentative Range: 56,495 – 55,428
👉 In summary, Equity Pandit’s analysis shows all major indices stuck in a bearish undertone. Traders are advised to wait for confirmation levels before initiating fresh positions.
News and Stocks That Might Be Impacted | Market Outlook 1st August
As the market grapples with mixed cues, these developments could significantly influence stock movements in today’s session:
Starlink Secures Licence to Launch Satellite Internet in India
In a major regulatory breakthrough, Starlink, the satellite broadband arm of Elon Musk’s SpaceX, has received a Unified License from the Indian government. This marks the final green light to begin operations, after over two years of waiting. The government has already drafted frameworks for spectrum allocation, gateway infrastructure, and end-user terminal clearances.
This move is expected to accelerate the rollout of satellite-based internet services in remote and rural parts of India, aligning with the country’s digital inclusion goals.
Stocks That Might Be Impacted:
- HFCL, Tejas Networks, and Indus Towers may benefit from satellite backhaul infra demand.
- Competitive pressure may build for players like Jio Satellite (Jio Platforms) and Bharti Airtel’s OneWeb, which already have spectrum allocations.
Apparel Exporters Under Pressure After US Tariff Shock
The Indian textile and garment industry faces fresh challenges after the US imposed a 25% tariff on select apparel imports from India. This came as part of a broader trade retaliation strategy. Exporters are already seeing delays in new orders and greater pricing pressure as American buyers reassess sourcing contracts.
This development comes at a time when global demand is already softening, and Indian exporters are battling rising raw material costs.
Stocks That Might Be Impacted:
- Export-heavy companies like KPR Mills, Gokaldas Exports, Arvind, Raymond, and Welspun India may see short-term corrections.
- The impact could be deeper for smaller MSME players reliant on the US market, especially from Tiruppur and Ludhiana clusters.
Tata Motors Announces ₹38,000 Cr Acquisition of Iveco
In a strategic move to strengthen its global footprint, Tata Motors has entered into an agreement to acquire Italy’s Iveco Group for ₹38,000 crore. Iveco is a major player in commercial vehicles, with strong presence in Europe, Latin America, and parts of Asia.
This is Tata Motors’ largest acquisition to date and could help it gain scale, access newer markets, and diversify revenue streams. The integration plan includes technology sharing, joint R&D, and a roadmap to enter the electric CV segment globally.
Stocks That Might Be Impacted:
- Positive tailwinds for Tata Motors and Tata Motors DVR in both domestic and international markets.
- Auto ancillary suppliers like Motherson Sumi, Bosch, and Wabco India could also benefit from larger production pipelines.
Premium Housing Demand Lifts Real Estate Despite Volume Dip
According to recent industry data, housing sales across major Indian cities declined 5% in units, but the total value of transactions rose 9%. This trend indicates a shift toward premium and luxury housing, especially in urban hubs like Delhi-NCR, Bengaluru, and Mumbai.
This premiumisation is being driven by rising disposable incomes, NRI interest, and changing post-pandemic preferences for larger homes with better amenities.
Stocks That Might Be Impacted:
- Real estate developers such as DLF, Lodha (Macrotech Developers), Prestige Estates, and Godrej Properties may benefit from improved margins.
- Related sectors like building materials (Kajaria Ceramics, Cera Sanitaryware) and interior finishes (Asian Paints, Greenply) are likely to see indirect gains.
Zerodha CEO Counters Criticism of India’s Derivatives Market
In response to growing scrutiny over India’s rising options volumes, Zerodha CEO Nithin Kamath defended the retail derivatives space, stating that India’s leverage levels are far lower than in developed markets like the US. He noted that most trades are done with minimal margin funding and high transparency.
His remarks come after SEBI flagged concerns over speculative retail behavior, raising fears of tighter regulations.
Stocks That Might Be Impacted:
- The commentary may stabilize sentiment around broking firms such as Angel One, ICICI Securities, Motilal Oswal, Geojit, and 5Paisa.
- Volumes might see near-term fluctuations, but confidence in the structural strength of the market is likely to stay intact.
Indus Towers Sees Vodafone Idea Reduce Outstanding Dues
Indus Towers has announced that Vodafone Idea has cleared a significant portion of its old dues, which has improved its Q1 cash flow position to ₹1,570 crore. Despite this, the company has chosen to defer dividend payouts, citing high future capex needs and ongoing risks in the telecom ecosystem.
This development suggests short-term relief but continued caution, especially around cash burn and industry consolidation risks.
Stocks That Might Be Impacted:
- Mixed signal for Indus Towers — while lower receivables are a relief, dividend suspension may weigh on sentiment.
- The update also reflects improving operational discipline at Vodafone Idea, though long-term sustainability remains uncertain.
IPO Update – Market Outlook 1st August
As we kick off August, the IPO market continues to show strong momentum. Several Mainboard and SME offerings have witnessed impressive subscription figures and solid grey market premiums (GMPs), indicating healthy investor appetite despite broader market volatility.
Mainboard IPOs to Watch
| IPO Name | GMP | Subscribed | Price (₹) | Est. Listing | IPO Size |
|---|---|---|---|---|---|
| Highway Infrastructure | ₹31 (44.29%) | 70x | ₹101 | 12-Aug | ₹130 Cr |
| Sri Lotus Developers | ₹42 (28.00%) | 11.1x | ₹150 | 6-Aug | ₹792 Cr |
| NSDL | ₹138 (17.25%) | 5.04x | ₹800 | 6-Aug | ₹4011.6 Cr |
| Aditya Infotech | ₹296 (43.85%) | 106.23x | ₹675 | 5-Aug | ₹1300 Cr |
These Mainboard IPOs are generating significant buzz, especially Aditya Infotech and Highway Infrastructure with strong oversubscription and high GMPs—indicating a potentially strong debut.
SME IPOs Gaining Investor Traction
| IPO Name | GMP | Subscribed | Price (₹) | Est. Listing | IPO Size |
|---|---|---|---|---|---|
| FlySBS Aviation | ₹195 (86.67%) | 225x | ₹420 | 8-Aug | ₹97.36 Cr |
| Kaytex Fabrics | ₹48 (26.67%) | 42.7x | ₹180 | 5-Aug | ₹66.31 Cr |
| Repono | ₹21 (21.88%) | 64.95x | ₹96 | 4-Aug | ₹25.34 Cr |
| Patel Chem Specialities | ₹27 (32.14%) | 167.32x | ₹84 | 1-Aug | ₹55.83 Cr |
| Shree Refrigerations | ₹70 (56.00%) | 187.55x | ₹125 | 1-Aug | ₹111.44 Cr |
FlySBS Aviation and Shree Refrigerations are the top SME names this week, with astronomical subscriptions and huge listing gains expected.
Stocks in Radar
According to Axis Direct, several stocks are currently under bullish watch with revised targets indicating attractive upside potential. Here are the key updates:
Large & Midcap Ideas
| Stock | LTP | Target | Reco Price | Change Since Reco (%) | Upside (%) | Rating |
|---|---|---|---|---|---|---|
| KPIT Technologies (Target Reduced) | ₹1,226.40 | ₹1,385.00 | ₹1,226.40 | 0.00% | 12.93% | Buy |
| Happiest Minds (Target Reduced) | ₹607.10 | ₹690.00 | ₹607.10 | 0.00% | 13.66% | Buy |
| Welspun Living (Target Reduced) | ₹126.08 | ₹150.00 | ₹126.08 | 0.00% | 18.97% | Buy |
Smallcap Opportunities
| Stock | LTP | Target | Reco Price | Change Since Reco (%) | Upside (%) | Rating |
|---|---|---|---|---|---|---|
| Greenply Industries | ₹322.40 | ₹385.00 | ₹322.40 | 0.00% | 19.42% | Buy |
| J Kumar Infraprojects (↑ Target) | ₹704.25 | ₹905.00 | ₹704.25 | 0.00% | 28.51% | Buy |
These recommendations from Axis Direct reflect their updated outlook on potential breakout plays and earnings strength. All stocks maintain a Buy rating despite minor target adjustments.
Conclusion
As we step into August, the Indian markets are navigating a mixed environment—robust domestic earnings are providing support, but global concerns like US rate cut uncertainty, foreign fund outflows, and geopolitical tensions continue to weigh on sentiment. According to Equity Pandit, Nifty and Bank Nifty are holding above key support levels, and the short-term trend remains cautiously bullish.
IPO activity remains vibrant with several promising listings on both Mainboard and SME fronts, while brokerages like Axis Direct have highlighted stock opportunities with strong upside potential across sectors.
Stay alert, stay informed.
The coming sessions could set the tone for the month ahead, and your edge will come from being prepared—both fundamentally and technically.
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