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Below the Quote on Market Morning Inputs 04th Aug July 2025 by Shrikant Chouhan, Head Equity Research, Kotak Securities

In the last week, the benchmark indices continued to face selling pressure at higher levels. The Nifty ended 1 per cent lower, while the Sensex was down over 1300 points. Among sectors, the FMCG Index outperformed, rallying over 2.95 percent, whereas the Reality and Defence indices declined the most. Reality shed 5.70 percent, and Defence was down by 4.65 percent.

During the week, the market consistently faced selling pressure at higher levels. Technically, on daily charts, the market is holding a lower top formation, and on weekly charts, it has formed a bearish candle. Additionally, the market is comfortably trading below the 50-day and 20-day Simple Moving Averages (SMA), which is largely negative.

We believe that the short-term market outlook is weakening; however, a fresh selloff is possible only if the 24,500/80400 level is broken below. If that happens, the market could slip to around 24,350/80200. Further downside may continue, potentially dragging the index down to 24,200–24,150/79700-79500. On the upside, a move above 24,650/81000 could change sentiment. Above this level, the market could retest the 20 days SMA at 24800/81450 or 50-day SMA at the 25,050/82000 zone.

For Bank Nifty, as long as it remains below 56,100, a weak formation is likely to persist. A decline below this level could see it slipping to 55,000–54,700. On the higher side, if it crosses above 56,100, it could bounce back toward the 50-day SMA or reach 56,500, with potential resistance at the 20-day SMA around 56,700.

Nifty has broken the 24600 level. Keep short positions intact till 24500-24450 levels. On the other hand, if it rises to 24650/24700 levels, then create short positions and keep the final stop loss at 24800. If it closes above 24,800, the market might experience a significant jump.

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