Nifty 50 Ends Six-Week Losing Streak: Key Short-Term Stocks to Watch Amid Tariffs and Earnings Pressure
Apollo Hospitals, Dr. Reddy’s, and Cipla lead gains as Nifty reclaims 24,600; Analysts eye 24,800 breakout for momentum toward 25,250.
Indian stock market recovers as Nifty 50 ends a six-week losing streak, fueled by easing inflation. Experts share short-term technical levels, top stock picks, and market outlook amid tariff concerns.
Nifty 50 Snaps Six-Week Losing Streak — What It Means for Short-Term Traders
The Indian equity market closed the week on a positive note, with the Nifty 50 gaining over 1% for the week ending August 14, breaking its six-week losing streak. The index ended at 24,631, reclaiming the 24,600 mark, driven by improved sentiment after India’s CPI inflation dropped to an eight-year low of 1.55% in July.
Top-performing stocks during the week included Apollo Hospitals, Eternal, Dr Reddy’s Laboratories, and Cipla, all of which outperformed on the back of strong sectoral momentum in healthcare and pharma.
Key Market Drivers This Week
- Easing Inflation Data
- The significant drop in CPI inflation provided a major boost to investor sentiment, suggesting scope for policy flexibility in the coming months.
- Tariff Concerns from the US
- New tariff announcements from US President Donald Trump remain a key global overhang, with possible implications for export-heavy sectors.
- Corporate Earnings Pressure
- Mixed Q1 earnings have kept traders cautious, especially in IT, consumer, and select manufacturing stocks.
Expert Insights & Technical Outlook
Ajit Mishra, SVP of Research at Religare Broking, highlighted that the market has largely digested recent negatives and is now awaiting a clear recovery trigger.
- Upside Levels:
A decisive breakout above 24,800 could trigger a rally towards 25,000–25,250 in the short term. - Support Levels:
Key support lies at 24,200 (200 DEMA), where buying interest is likely to emerge. - Strategy:
Traders should adopt a stock-specific approach with strict risk management, especially given the global uncertainty.
Short-Term Stocks to Watch
- Apollo Hospitals – Strong buying interest driven by sectoral tailwinds; potential for short-term swing gains.
- Dr Reddy’s Laboratories – Pharma sector resilience may continue; watch for breakouts on higher volumes.
- Cipla – Technical charts indicate momentum building; suitable for short-term traders with defined stop-loss.
- Eternal – Riding on sector momentum; could benefit from continued defensive buying.
Looking Ahead
In the coming week, traders will closely track:
- Global cues around US tariffs and geopolitical tensions.
- Domestic macro data that could further influence RBI’s policy stance.
- Sector rotation patterns—Healthcare and Pharma are leading now, but cyclicals may pick up if global fears ease.
If Nifty sustains above 24,800, momentum buying could emerge, potentially targeting 25,250. However, failure to break this resistance may keep markets in a sideways consolidation between 24,200–24,800.
Bottom Line:
Short-term traders should be nimble, focusing on sector leaders with strong technical setups, while keeping an eye on global headlines that could trigger sharp intraday swings.
