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Below the Quote on Post market comment for Tuesday August 4 by Sachin Gupta, VP-Technical Research at Choice Broking

Indian equity benchmark Nifty 50 ended the session on a weak note, closing at 24,614.90, down 159.40 points (-0.64%), after witnessing profit booking following the recent rally. The index opened with a 71-point gap-down at 24,703, which also marked the day's high, and remained under selling pressure for most of the session before slipping to an intraday low of 24,427.95. However, a sharp 150-point rebound during the closing auction session lifted the index from its intraday lows, helping it settle well above the day's bottom and form a long lower wick on the daily candle, indicating support at lower levels. Despite the corrective session, Nifty continues to trade above all its key moving averages, suggesting that the broader bullish structure remains intact.

From a technical perspective, the RSI stands at 61.77, indicating that momentum remains positive despite the day's weakness. As long as the index holds above the 24,350–24,400 support zone, the broader trend is likely to remain constructive, although some consolidation may continue after the recent sharp rally. Immediate resistance is placed at 24,750–24,800, and a sustained breakout above this zone could revive bullish momentum. The expected trading range for the next session is 24,350–24,800.

The Nifty PCR stood at 1.11, reflecting a balanced-to-positive derivatives setup despite the corrective session. Meanwhile, India VIX rose to 12.19, indicating a slight increase in market volatility and a cautious undertone among traders. Sector-wise, Nifty Media, Metal, and PSU Bank emerged as the top-performing sectors during the session, while Nifty Realty remained the weakest performer amid continued profit booking.

Overall, the benchmark indices witnessed profit booking after the recent rally, but buying interest at lower levels helped both Nifty and Bank Nifty recover significantly from their intraday lows, indicating that the broader market structure remains healthy. While near-term consolidation cannot be ruled out, both indices continue to hold above important support zones and key moving averages, keeping the overall trend constructive. Traders may continue to adopt a buy-on-dips approach as long as support levels remain intact, while a decisive breakout above the immediate resistance zones could revive bullish momentum and extend the ongoing uptrend..

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