Nifty 50, Sensex today: What to expect from Indian stock market in trade on August 4

Mint

a day ago

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open on a cautious note on Monday, tracking mixed global market cues.
The trends on Gift Nifty indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 24,675 level, a premium of nearly 48 points from the Nifty futures' previous close.
On Friday, the domestic equity market ended sharply lower, with the benchmark Nifty 50 closing below 24,600 level.
The Sensex dropped 585.67 points, or 0.72%, to close at 80,599.91, while the Nifty 50 settled 203.00 points, or 0.82%, lower at 24,565.35.
Here's what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex dropped 1.08% last week, marking its fifth consecutive weekly decline, and has been facing immediate resistance between 81,500 and 81,700 — a region that previously acted as support.
'A sustained move above this zone is required to shift momentum back in favour of the bulls, potentially paving the way for a move toward 82,200. On the downside, support lies at the 80,000 - 79,800 zone. A breach below this level may trigger further selling, dragging Sensex toward 79,200 – 79,000 in the near term,' said Mayank Jain, Market Analyst, Share.Market.
Nifty 50 index formed a High Wave candlestick pattern on the daily timeframe on August 1, indicating a sense of indecision in the market. Meanwhile, the index formed an Inverted Hammer candlestick pattern on the weekly timeframe, which suggests a chance of reversal.
'A long negative candle was formed on the daily chart on Friday at the new swing lows beside the long bull candle of previous session. Technically, this market action is suggesting inherent weakness in the market to sustain the bounces. Nifty 50 is currently placed near the crucial support of around 24,500 levels (multiple swing lows of May-June 25), but the sustainable recovery has not emerged from near the support so far. The bearish lower highs and lower lows pattern is intact on the daily chart,' said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
Nifty 50, on the weekly chart, formed a reasonable negative candle, which is for the fifth consecutive bearish candle formation on the trot. The previous sharp upside breakout of larger range movement of last month has been completely negated and the market slipped below the immediate support zone of 24,600 mark, Shetti added.
According to him, the underlying trend of Nifty 50 remains weak, and a decisive move below the support of 24,500, Nifty 50 could slide down towards the next lower area of 24,100 - 24,000 levels in the near term. Immediate resistance is placed at 24,950 levels.
Mayank Jain noted that the key resistance for Nifty 50 is now positioned in the 24,800 – 25,000 zone.
'This level has repeatedly capped upside attempts, and a clear breakout will be needed to restore bullish confidence and aim for the 25,200 – 25,350 zone. On the lower end, the index has near-term support at 24,400 – 24,200. A decisive break below this range may accelerate downside momentum toward the 24,000 level,' Jain said.
Dr. Praveen Dwarakanath, Vice President of Hedged.in, said that the Nifty 50 formed a Head and Shoulder pattern on the daily chart with the neckline placed at the 24,500 level.
'The support for Nifty 50 is also at the 24,500 levels, a break of which can take the index to the 24,000 levels soon. The momentum indicators are showing weakness in the index, suggesting a fall at least till the support level in the coming days. The Options writer's data shows increased call writing for the present weekly expiry, indicating weakness in the index. The global cues also indicates weakness to continue in the index,' said Dwarakanath.
VLA Ambala, Co-Founder of Stock Market Today recommends market participants to continue their 'sell-on-rise' strategy until the Nifty 50 index tests its support range between 24,000 and 24,150.
'They may plan breakout trades above 24,850, as this level is an important resistance point for the Nifty 50 index. We can expect Nifty 50 to gather support between 24,530 and 24,400 and meet resistance near 24,820 and 24,950 in today's trading session,' Ambala said.
Bank Nifty ended 344.35 points, or 0.62%, lower at 55,617.60 on Friday, forming another red candle on the daily chart, reflecting continued pressure near the 56,000 mark — a level that earlier acted as a cushion.
'Bank Nifty index is trading below both its 20-day and 50-day exponential moving averages, with both averages exhibiting a downward slope — a sign of prevailing weakness. Additionally, the daily RSI has slipped below the 40 mark and continues to trend lower, reflecting fading momentum and increasing bearish pressure. The daily MACD stays bearish as it is quoting below its zero line and signal line. The MACD histogram is suggesting a pickup in downside momentum,' said Sudeep Shah, Head - Technical and Derivatives Research, SBI Securities.
Going ahead, he believes the zone of 55,200 - 55,100 will act as important support for the Bank Nifty index. If the index slips below the 55,100 level, then the next crucial support is placed at the 54,600 level. On the upside, the zone of 56,300 - 56,400 will act as an immediate hurdle for the index.
Om Mehra, Technical Research Analyst, SAMCO Securities highlighted that both the 20-day and 50-day SMAs remain breached, confirming the short-term downtrend. The RSI has declined further to 39, maintaining a consistent downward slope in the near term.
'The next support for Bank Nifty lies at 55,150 – 55,000, a zone that held well during the mid-June consolidation phase. A decisive breakdown below this zone may invite further decline. The immediate resistance has shifted to 56,000, followed by 56,200. A close above these levels will be essential to neutralize the ongoing weakness. The intraday sessions may become more volatile in the coming days,' Mehra said.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.