Indian Stock Market Outlook: Nifty Support at 24,500 as Global Cues and FII Inflows Lift Sentiment

The Indian stock market began August on a bullish note, with benchmark indices opening higher on Monday, August 1, 2025. Investor sentiment improved as a mix of global and domestic factors provided a lift to the markets.

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Geopolitical Tensions Show Signs of Easing

Reports indicate that the United States may consider easing sanctions on Russia, potentially allowing oil purchases to resume. This development boosted market optimism, particularly for energy-related sectors.

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Strong FII Inflows Support Market

Foreign Institutional Investors (FIIs) have infused nearly ₹14,000 crore into Indian equities so far in August, improving overall liquidity and driving buying interest across sectors.

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Trump’s Tax Policies Influence Global Markets

Global markets, including India, reacted to policy statements from former US President Donald Trump regarding proposed tariff changes. Analysts note that while these tax policies could have long-term growth implications, short-term sentiment remains positive.

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Key Events to Watch This Week

Investors are keeping a close watch on upcoming US inflation data, which could influence global interest rate expectations. Domestic market participants are also awaiting key corporate earnings announcements for further direction.

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Nifty Technical Analysis

Nilesh Jain, Technical Analyst at Centrum Broking, highlighted that Nifty has regained its 100-DMA, aligning with the psychological support level of 24,500. Immediate support is now seen at 24,340, with potential upside towards 24,750 in the short term.

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Cautious Optimism Remains

While short-term bias has turned positive, analysts warn that markets are not completely out of the woods. LKP Securities analysts advise investors to remain selective and consult certified experts before making investment decisions.