MARKET ANALYSIS (NIFTY 50) AS ON 11AUGUST'2025

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Market Analysis as on 11August' 2025

Today’s market session formed a bullish candle; however, price action and volume data suggest that this move is more likely a retracement within the prevailing downtrend rather than a genuine trend reversal. The candle lacks the momentum and follow-through strength typically required to shift overall market sentiment from bearish to bullish.

From the institutional activity perspective, Foreign Institutional Investors (FIIs) remain net sellers, signaling continued caution and capital outflow from Indian equities. In contrast, Domestic Institutional Investors (DIIs) are net buyers, providing some short-term support to the market. FIIs appear to be diversifying their portfolios with a greater focus on other Asian economies, possibly due to more favorable risk–reward ratios or geopolitical considerations.

On the global front, the NASDAQ is exhibiting a bullish bias, driven largely by strength in technology stocks, while the Dow Jones Industrial Average remains in a downtrend, reflecting weakness in industrial and cyclical sectors. This divergence indicates that global market sentiment is mixed, with sector-specific opportunities rather than broad-based optimism.

Geopolitical developments have added further pressure on Indian markets. The United States has imposed a steep 50% tariff on Indian goods, with half of this being explicitly punitive for India’s continued oil imports from Russia. This action may dampen India’s export competitiveness, impact corporate earnings in export-heavy sectors, and weigh on overall investor sentiment in the medium term.

Key Technical Observations:
- Current up-move lacks volume confirmation.
- Resistance remains intact near recent swing highs.
- Market breadth still favors the bears despite today’s green close.

Outlook: Unless upcoming sessions see sustained buying backed by higher volumes, the probability remains high that today’s bullish candle is merely a pullback in the ongoing bearish phase rather than the beginning of a trend reversal.

Disclaimer

This market analysis is prepared for informational purposes only and should not be considered as investment advice.
Market conditions are subject to change without notice, and past trends do not guarantee future performance.
Investors are advised to conduct their own research or consult a certified financial advisor before making investment decisions.

Location: Ludhiana, Punjab, India

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