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Below the Quote on Post Market Comment 06th Aug 2025 by Hardik Matalia, Research Analyst, Choice Broking Ltd

Indian equity markets ended on a negative note on August 6, after witnessing volatility during the session. The Sensex declined by 166.26 points or 0.21% to close at 80,543.99, while the Nifty slipped 75.35 points or 0.31% to settle at 24,574.20. Market breadth was broadly negative, with 591 stocks advancing and 1,909 declining, reflecting widespread selling pressure across sectors despite brief intraday recoveries.

The Nifty index opened on a flat note and faced rejection right from the start of the session, witnessing volatility throughout the day. On the daily chart, a bearish-bodied candle with both upper and lower wicks has formed, indicating indecision and selling pressure at higher levels. In the previous session, an Inside Bar candle was formed, and notably, the low of that candle has not yet been broken, suggesting that the index is still holding within the prior range. Currently, the Nifty is trading below its short-term and medium-term EMAs, reflecting a weak short-term trend and lack of bullish momentum. On the downside, immediate support is placed at 24,500, followed by a stronger support near 24,400. A breach below this zone may lead to further downside pressure. On the upside, immediate resistance is seen around 24,700, followed by 24,800 and 25,000. A decisive breakout above 25,000 is essential to signal a pause in the ongoing downtrend and open the door for fresh buying opportunities. Top gainers in the Nifty 50 were Asian Paints, HDFC Life, BEL, Trent, and Adani Ports, while the top losers included Wipro, Sun Pharma, IndusInd Bank, Jio Financial, and Tech Mahindra.

The Bank Nifty index witnessed a volatile session amid the RBI policy announcement but managed to end the day on a positive note, gaining 50.90 points or 0.09% to close at 55,411.15. On the daily chart, the index formed an Inside Bar candlestick pattern with a small bullish body and both upper and lower wicks, indicating indecision in the market and a tug-of-war between buyers and sellers at key levels. On the downside, immediate support is placed in the 55,200–55,000 zone. A breach below this range could invite further selling pressure and weaken the short-term structure. On the upside, immediate resistance is seen around 55,700, followed by a key hurdle near 56,000. A decisive breakout above 56,000 is necessary to signal a pause in the current downtrend and revive bullish momentum. Until then, the index is likely to remain range-bound, and traders should adopt a cautious approach. A sustained move above resistance or breakdown below support will likely determine the next directional move.

India VIX edged up by 2.11% to 11.96, indicating a slight rise in market volatility and a cautious undertone among participants. On the derivatives front, the highest Call Open Interest (OI) for Nifty is seen at the 24,600 strike, followed by 24,700, suggesting that these levels may act as immediate resistance. On the Put side, the highest OI is placed at 24,500, followed by 24,400, highlighting strong support zones for the index. This OI distribution suggests that the 24,400–24,700 range will be critical for Nifty’s near-term directional move, and a decisive breakout or breakdown from this zone could set the tone for the next leg of the trend.

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