Nifty Opens Higher with GIFT Nifty Up 30 Points: Trading Setup for Today’s Session
By Smart Money Mindset Staff
Date: August 19, 2025
Indian equity markets showed strong early momentum on Tuesday, buoyed by positive developments following the Prime Minister’s announcement of second-generation Goods and Services Tax (GST) reforms in his Independence Day address. The GIFT Nifty index on NSE’s International Exchange (NSE IX) opened with an encouraging gain of approximately 30 points, signaling a positive start for Dalal Street.
Market Overview
The GIFT Nifty climbed 30 points, or about 0.12%, to trade near the 24,988 mark in pre-market trade, indicating investor optimism ahead of the day’s session. The benchmark Nifty index closed the previous session at 24,944.60, up 67.65 points, continuing its recovery trend.
Siddhartha Khemka, Head of Research at Motilal Oswal Wealth Management, emphasized the market’s optimism, noting the potential for a sustained corporate earnings rebound in the second half of fiscal year 2026 (2HFY26). He cited a confluence of factors, including the GST 2.0 reforms, potential sovereign rating upgrades, government tariff relief, RBI and government stimulus measures, monsoon-driven consumption revival, and the upcoming festive season demand. These elements collectively support a bullish outlook on Indian equities over the next six to nine months.
Technical Outlook
From a technical perspective, the Nifty index’s ability to surpass the critical 25,000 mark—coinciding with its 50-day moving average (50-DMA)—will be decisive in determining the strength of the upward move. Analysts suggest that if Nifty maintains momentum and holds above this level, it could further extend gains towards the 25,300 to 25,500 range in the August series.
Momentum indicators and oscillators have turned supportive, hinting at follow-up buying in the coming sessions. Meanwhile, the India VIX, a gauge of market fear and volatility, eased slightly to 12.34, reflecting reduced investor anxiety.
Foreign Institutional Investors and Domestic Flows
Foreign Portfolio Investors (FPIs) slightly eased their net short position in the futures market, reducing from Rs 1.82 lakh crore on Thursday to Rs 1.71 lakh crore as of Monday. Despite this, FPIs remained net sellers of Indian equities on Monday, offloading shares worth Rs 551 crore.
Conversely, Domestic Institutional Investors (DIIs) demonstrated strong buying interest, net purchasing shares worth Rs 4,104 crore, providing robust support to the markets.
Sector and Stock Highlights
The trading session is expected to witness volatility in the Futures and Options (F&O) segment for certain stocks such as RBL Bank, PG Electroplast, and Titagarh Wagons, which are currently under trading restrictions due to position limits.
Among the major stocks closely watched by traders are SBI, Axis Bank, HDFC Bank, Infosys, Wipro, and NTPC—all essential components of key market indices—showing varied intra-day movement but generally supported by the broader positive sentiment.
Global Market Context
Global equities opened subdued with Asian stock markets showing hesitation following a flat close for the S&P 500 on Monday. Investors remain cautious ahead of the Federal Reserve’s annual symposium in Jackson Hole, Wyoming, later this week, where significant insights into U.S. interest rate policy are expected.
Commodities such as crude oil saw slight declines due to ongoing discussions of a potential three-way dialogue between Russia, Ukraine, and the U.S. aimed at resolving the conflict in Ukraine. Gold prices remained steady, mirroring the cautious stance in global markets.
Currency Movement
The Indian rupee appreciated by 20 paise, closing at 87.39 against the U.S. dollar on Monday, supported by strong domestic equity inflows and positive market sentiment.
Conclusion
The initial rise in the GIFT Nifty coupled with strong domestic institutional buying and favorable macroeconomic reforms signal a cautiously optimistic trading session ahead. Market participants will closely monitor Nifty’s benchmark mark of 25,000 for confirmation of a sustained rally.
Investors are advised to keep an eye on the evolving global cues, upcoming corporate earnings, and the Federal Reserve’s policy announcements, which could influence market volatility in the near term.
Stay tuned to Smart Money Mindset for more market updates and in-depth analysis.
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