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Below the Quote on Market Wrap Up 04th Aug 2025 by Shrikant Chouhan, Head Equity Research, Kotak Securities

Today, the benchmark indices witnessed a promising pullback rally. The Nifty ends 157 points higher, while the Sensex was up by 419 points. Among sectors, almost all the major sectoral indices traded in positive territory, but the Metal and Defense indices outperformed, rallying over 2.5 percent. Technically, after a sharp correction on intraday charts, the market has formed a reversal pattern, and on daily charts, it has formed a bullish candle, which is largely positive. We are of the view that, in the short term, the market's texture is weak but oversold; hence, a sharp technical bounce back is not ruled out from the current levels.

For day traders, 24,550 / 80,600 and 24,500 / 80,500 would act as key support zones, while 24,850-24,950 / 81,500-81,800 could be the key resistance areas for the bulls. However, below 24,500 / 80,500, the sentiment could change. Below this level, traders may prefer to exit their long positions.

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