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Below the Quote on Post Market Comment 05th Aug 2025 by Mandar Bhojane, Research Analyst, Choice Broking

Indian equity markets ended the day on a weaker note, with the Nifty slipping below the 24,700 mark. At close, the Sensex declined by 308.47 points or 0.38% to end at 80,710.25, while the Nifty fell 73.20 points or 0.30% to settle at 24,649.55. Among the sectoral indices, the Auto index outperformed, gaining 0.4%, while other major indices such as Banking, IT, Oil & Gas, FMCG, and Pharma closed with losses of around 0.5% each. Broader markets were relatively stable, with BSE Midcap and Smallcap indices ending with marginal losses, indicating stock-specific activity.

On the technical front, Nifty continues to show resilience. It took support near its 100 EMA and has now sustained above it for seven consecutive sessions, suggesting a potential bullish reversal is in play. Going ahead, immediate resistance is seen at 25,000 and 25,200 levels—zones where traders may consider partial profit booking. On the downside, 24,400–24,186 remains a critical support area, coinciding with the 200 EMA, providing a strong base for any dips.

Bank Nifty remains relatively weak and continues to underperform the Nifty. It is still trading below its recent range breakout zone, indicating lack of momentum. If the index remains below 55,115, it may drift further toward 54,900, where the 100 EMA is placed. On the other hand, 56,000 will act as a crucial resistance level—a decisive close above this could spark fresh buying interest.

Volatility declined slightly, as the India VIX fell 1.84% to 11.71, indicating reduced fear and improved trader sentiment. In the options segment, the highest Call open interest is seen at the 24,800 and 25,000 strikes—signaling key resistance levels. Meanwhile, the highest Put open interest lies at the 24,600 strike, suggesting it to be an important support zone.

The combined technical and derivatives setup suggests that as long as key support levels hold, there is a potential for upward continuation. Traders are advised to remain cautiously optimistic, use dips to accumulate quality names, and manage risk with appropriate stop-loss strategies.

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