Market Commentary (closing) for 05th August 2026 by Bajaj Broking Ltd
Market Closing Commentary
Indian benchmark indices surrendered a major portion of their early gains and ended the session with marginal advances after the Reserve Bank of India (RBI) maintained its neutral monetary policy stance. Investor sentiment turned cautious in the latter half of the session amid fresh geopolitical concerns following comments by U.S. President Donald Trump regarding Iran and the Strait of Hormuz, while Brent crude oil prices rebounded towards the $80 per barrel mark, limiting further upside in the benchmark indices.
At close, the Sensex gained 152.05 points or 0.19% to settle at 78,581, while the Nifty 50 advanced 9.75 points or 0.04% to close at 24,624.65.
On the sectoral front, Nifty Metal, Auto, and Realty emerged as the top-performing sectors, witnessing healthy buying interest throughout the session. On the other hand, Nifty Media, FMCG, and Private Banks remained the key laggards, as profit booking in these sectors capped the benchmark indices' gains.
The broader market continued to outperform the frontline indices. The Nifty Midcap 100 index gained 0.18%, while the Nifty Smallcap 100 index advanced 0.76%. Both indices traded near their all-time highs, highlighting sustained buying interest and continued strength in the broader market.
Nifty Outlook
Nifty traded in a range with corrective bias for the second session in a row and closed above 24,600 levels. In the daily chart it has formed a bullish hammer like candle with a small real body and long lower shadow which remained enclosed inside previous session price range signaling consolidation and buying demand at lower levels. Index has recently generated a breakout above the triangular consolidation of the last three months highlighting overall strength and the index to gradually head towards 25,000-25,200 levels in the coming weeks.
Nifty in the last two sessions is witnessing consolidation after rallying more than 1100 points in just 7 sessions from 23,606-24,774. The daily stochastic is also reacting lower from the overbought territory. We expect the index to extend the last two sessions consolidation and form a base at higher levels. The overall structure is positive, we believe the current breather should be used to accumulate quality stocks in a staggered manner. Immediate support is placed at 24,400-24,500, index holding above the same will lead to a pullback towards 24,720 and 24,800 levels in the coming sessions. While key short-term support is revised higher towards the 24,200-24,000 levels being the confluence of the key retracement of the current up move and 20- and 50-days EMA.
Bank Nifty Outlook
Bank Nifty traded within a narrow range and formed an inside bar candle with wicks on both sides, indicating indecision after the recent phase of profit booking. The index found support near its 20-day EMA, suggesting buying interest at lower levels despite stock-specific action.
The index continues to consolidate within the broader 56,500–58,700 range that has been in place over the past seven weeks. A decisive breakout above 58,700 would signal a resumption of the uptrend, opening the door towards 59,300 and 60,000 in the coming sessions. Until then, the index is likely to remain range-bound with a stock-specific bias.
On the downside, the 57,400 (20-day EMA) zone is expected to act as the immediate support, followed by the 57,000–56,800 zone. On the upside, immediate resistance is placed at 58,000–58,100, while a decisive move above 58,500–58,700 would strengthen the bullish momentum.
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