Disappointing week for the Markets !

Markets Overview

It was a disappointing week for the Nifty, closing 1.22% lower. The index is breaking down below the 20-day moving average, although there’s no danger yet of a major downtrend. However, the recent gains that took the Nifty above its congestion zone have now been lost, and it looks likely we may get stuck in that range again going forward.

On the weekly chart, it’s clearer that while the Nifty tried to push higher, it has stalled. More consolidation may be required before the market makes a decisive move. The base around 24,300 to 24,400 remains crucial support, sitting about 700 points below where we are now, so there isn’t too much immediate cause for alarm.

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Another dull week has passed, with markets finally breaking down today. The trigger was TCS results falling short of expectations, though weakness had been building for several sessions. Small, gradual changes were already signalling softness; TCS simply acted as the catalyst. Selling pressure has emerged across IT, auto, defence, and capital market stocks.

Confusion over tariffs continues. Trump’s erratic announcements—such as 500% duties on those dealing with Russia, and a 30% tariff on Canada effective 1st August—are creating widespread uncertainty. No one knows what policies will hold tomorrow, making global business planning difficult. Companies are hesitant to launch new projects as future import costs remain unpredictable.

Rebalance Update for the week