Morning Action @ 7 AM – Tuesday, July 8th 2025

# The good news this Tuesday morning is that the Japanese Nikkei 225 is trading above the dotted lines even after US President Donald Trump announced that Japan will face a 25% tariff starting August 1st.

The street is bit hopeful as easing investors’ concerns is the fact that the August 1st deadline allows more time for negotiations. Moreover, the 25% tariff starting August 1st is lower than the previously threatened rate of up to 35%.

# As of writing, Gift Nifty and Wall Street stock futures are seen trading with caution on reports that tariffs to go into effect Aug. 1

# Strictly speaking, tariff volatility is back on the front pages and the negative takeaway is that there is no end in sight for tariff uncertainties.

# Long story short: Proceed with caution at Dalal Street as Trump Reboots the Tariff Trade.

# 7:00 AM GLOBAL UPDATE:
GIFT Nifty: (-2, 25514)
Dow Futures: (-24, 44386)
Nasdaq 100 Futures (+54, 22739)

Nikkei (+82, 39670)
Hang Seng (+40, 23928)

Dow Jones (-422, 44406)
Nasdaq Composite (-189, 20413)
Bovespa (-1774, 139490).

# MARKET TRENDS:
Global cues: Negative
FII: (+321.16 crores)
DII: (+1853.39 crores)
Sentiment: Risky
Market Breadth: Negative
Technicals: Overbought conditions.
F&O: 25000 - 26000 zone.

India VIX 12.56 (+1.99%)
USD/INR Futures (29th July) 85.98
Nifty PCR (31st July) 1.20
Bank Nifty PCR (31st July) 0.95

# Nifty Outlook: Nifty bulls are likely to struggle with Trump trade policies back in the spotlight.

# WHAT TECHNICALS TELLS US ON NIFTY & BANK NIFTY:

NIFTY (CMP 25461):
SUPPORT: 25221/25000
RESISTANCE: 25670/26277
RANGE: 25250-25600
BIAS: Neutral
21 DMA: 25179
50 DMA: 24872
200 DMA: 24090

SENSEX (CMP 83443):
SUPPORT: 82733/81900
RESISTANCE: 84100/85978
RANGE: 82100-83800
BIAS: Neutral
21 DMA: 82577
50 DMA: 81790
200 DMA: 79322

BANK NIFTY (CMP 56949)
SUPPORT: 56100/55149
RESISTANCE: 57250/58300
RANGE: 55500-57500
BIAS: Neutral
21 DMA: 56533
50 DMA: 55774
200 DMA: 52197

WHAT HAPPENED AT WALL STREET IN OVERNIGHT TRADE:

# The US President Donald Trump has sent letters to the leaders of more than a dozen countries, including Japan and South Korea, with new tariff rates at 25% on their goods that are shipped to the U.S.

# As on Monday’s closing bell, the S&P 500 slipped 0.8% at 6,229, the Nasdaq Composite fell 0.9% to 20,412, and the Dow Jones was down 0.9% at 44,406.

# Trump’s tariff threats could dampen global growth and curb demand for industrial metals

# Copper prices fell below $5 per pound as investors continued to grapple with global trade uncertainties.

# Copper prices primarily declined following Trump’s latest threat to impose an additional 10% tariff on countries aligning with what he described as “anti-American policies on BRICS.”

# Gold prices ($3333 per ounce) was seen consolidating.

# WTI crude oil futures were seen consolidating with slight positive bias, now near the $67.61 per barrel.

LotusFunds Super Trader: The Trump tariff issues is unlikely to end soon, hence brace for volatility, volatility and volatility.

STOCK MARKET NEWS:

# Nifty bulls are likely to struggle with Trump trade policies back in the spotlight.

# The Breaking News: Trump imposes 25% tariffs on Japan, South Korea

# The Trump’s tariff threats could dampen global growth and curb demand for industrial metals.

# Copper prices fell below $5 per pound as investors continued to grapple with global trade uncertainties.

# This week, the spotlight will also be on other 2-catalysts:

1) The release of the FOMC minutes on July 9th
2) TCS officially sets afire the ceremonial starters pistol for Q1 earning season on July 10th.

# NIFTY (CMP 25461):
1) Confirmation of strength only above 25670 mark.
2) Biggest support for Nifty is now placed at 25221 mark.

# Long Story Short: The Trump tariff issues shall lead to volatility, volatility and volatility.

# Bottom-line: US-India trade development eyed.

# Amongst stock specific action:

1) Texmaco Rail & Engineering (-0.45%) is consolidating after the company said that it has received an order worth Rs 36.27 crore from Transport Corporation of India (TCI) for the supply of two rakes, comprising 54 ACT-3 type wagons and two BVCM wagons. The order is scheduled to be executed within 24 months.

2) Dhanlaxmi Bank rose 1.04% after the company’s gross advances grew 17.3% to Rs 12,484 crore as of 30 June 2025 from Rs 10,643 crore as of 30 June 2024.

# Now, before we get into detail of today’s trading session, here is the preferred trade on Nifty and Bank Nifty:

Nifty (25461): Buy between 25221-25275 zone. Stop at 24971. Targets 25670/25750. Aggressive targets at 26100-26277.35 zone.

Bank Nifty (56949): Buy between 56100-56300 zone. Stop at 55011. Targets 57350/57700. Aggressive targets at 58300-58500 zone.

# Our chart of the day is bullish on CUMMINS INDIA and HPCL on any early intraday weakness with an interweek perspective.

# The 1 Stock to Buy Now: Buy CUMMINS INDIA (CMP 3436): Buy between 3391-3405 zone. Stop at 3341. Targets 3489/3551. Aggressive targets at 3661. (Interweek Strategy). Rationale: Enjoyed strong session in yesterday's trade, up 2.82%. Signaling a massive breakout on the upside on the daily charts from a higher consolidation zone. Key interweek support 3300. Major hurdles at 3661.

LotusFunds Super Trader: The Trump tariff issues is unlikely to end soon, hence brace for volatility, volatility and volatility.

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RISK DISCLOSURES ON DERIVATIVES:

# 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.

# On an average, loss makers registered net trading loss close to 50,000.

# Over and above the net trading losses incurred, loss makers expended an additional 28%of net trading losses as transaction costs.

# Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.

Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

This does not construe to be an investment advice. Stock market investments are subject to market risks. All information is a point of view, and is for educational and informational use only. The author accepts no liability for any interpretation of articles or comments on this platform being used for actual investments.