Markets on the Edge: Nifty Eyes Breakout as Bulls Battle Global Uncertainty

A Flat Start With Big Expectations

Markets on the Edge: Nifty Eyes Breakout as Bulls Battle Global Uncertainty – The Indian stock market opened cautiously on September 8, 2025, with benchmark indices Sensex and Nifty 50 showing minimal movement. The Sensex closed nearly flat at 80,710.76, down just 7 points, while the Nifty 50 edged up by 6.7 points to settle at 24,741.00.

Despite the quiet start, market experts believe this week could be pivotal. The Nifty is hovering just below the psychological resistance level of 25,000, and a breakout could trigger a fresh rally toward 25,250–25,500. Technical indicators suggest a bullish structure, with support zones at 24,600–24,500 providing a cushion against volatility.

The broader market showed resilience, with Midcap and Smallcap indices gaining around 2.5% last week, outperforming the benchmarks. However, sectoral performance remained mixed, reflecting cautious investor sentiment ahead of key global and domestic events.

Sector Watch: Winners, Losers and What’s Next

While the overall market remained steady, individual sectors told a more dynamic story:

• Nifty Auto led the gains, rising over 1%, driven by strong performance from Eicher Motors, M&M, and Shriram Finance.
• Nifty Metal and Media also closed in the green, showing signs of renewed investor interest.
• On the downside, IT, FMCG, and Realty sectors faced pressure, with heavyweights like ITC, Cipla, and HCL Tech dragging the indices lower.

The Bank Nifty index traded in a tight range between 53,500 and 54,500, closing near 54,114.55. Analysts suggest a breakout above 54,775 could confirm upward momentum, while support at 53,500 remains crucial.

Looking ahead, GST rate cuts and strong GDP data are expected to boost consumption-driven sectors. However, foreign fund outflows and global economic uncertainty, especially from China and the US, may limit upside potential.

Top Stock Picks: Swiggy and Phoenix Mills Shine

According to Motilal Oswal Financial Services, two standout stock recommendations for this week are Swiggy and Phoenix Mills:

• Swiggy is benefiting from reduced competition in quick commerce and improved cost discipline. With food delivery growth expected to accelerate, analysts forecast a 23% GMV CAGR over FY26-28. Swiggy has been upgraded to BUY with a target price of ₹560.
• Phoenix Mills is expanding aggressively with new malls in cities like Lucknow, Indore, Ahmedabad, Pune, and Bengaluru. Its office portfolio is expected to grow nearly fourfold by FY27, driving a rental income CAGR of 71%. The stock is rated BUY with a revised target of ₹2,044.

These picks reflect investor confidence in urban consumption and retail infrastructure, even as broader market sentiment remains cautious.

Global Cues and Investor Sentiment

Global markets offered mixed signals. While Wall Street posted gains last week, concerns over China’s disinflation and US jobs data continue to weigh on sentiment. In India, Foreign Institutional Investors (FIIs) remained net sellers, pulling out over ₹60,000 crore from financial and IT sectors in the past two months.

However, Domestic Institutional Investors (DIIs) provided strong support, injecting over ₹2,200 crore into the market on September 4 alone. This domestic inflow is helping cushion volatility and maintain a bullish undertone.

Technical analysts suggest a “buy-on-dips” strategy near support levels, especially as Nifty holds above key moving averages. Option data shows strong Call writing at 25,000, marking it as a crucial resistance, while Put writing at 24,650-24,800 indicates bullish sentiment building at higher support zones.

The week ahead will test the market’s strength as it flirts with breakout levels. With sectoral rotation, global headwinds, and investor caution in play, traders are advised to stay nimble and watch for decisive moves.

Also read: Markets on the Move: Sensex and Nifty Surge as GST Optimism Lifts Investor Mood

Stay informed with the latest news and updates – only on Rapido Updates.