Nifty, Sensex on August 5: What to expect after Trump tariff threat

The Indian stock market is expected to open on a cautious note on Tuesday, August 5, following US President Donald Trump’s threat of higher tariffs on Indian exports, despite positive cues from global markets. The Gift Nifty was trading near 24,757, indicating a slightly weak start as it reflected a 37-point discount from the previous Nifty futures close.

On Monday, the markets ended on a strong note. The Sensex jumped 418.81 points, or 0.52%, to settle at 81,018.72, while the Nifty 50 gained 157.40 points, or 0.64%, closing at 24,722.75.

Looking ahead, the Sensex has formed a bullish reversal pattern on daily charts. Experts suggest that while the short-term trend remains weak, the market appears oversold, which may lead to a technical rebound. According to Shrikant Chouhan of Kotak Securities, the key support levels for the Sensex lie at 80,600 and 80,500, with resistance expected in the 81,500 to 81,800 range. A drop below 80,500 could shift the sentiment negatively and trigger long-position exits.

Market analyst Mayank Jain also sees resistance for the Sensex around 81,500–81,700. A breakout above this zone could open the path for a rally towards 82,200. Traders are advised to remain cautious amid global uncertainty and domestic volatility.