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Below the Quote on Pre-Market Comment 01st Aug 2025 by Hardik Matalia, Research Analyst, Choice Broking Ltd

Indian benchmark indices are expected to open on a negative note today, as indicated by the GIFT Nifty, which signals a significant downtick of around 128 points in the Nifty 50. Market sentiment remains cautiously optimistic, weighed down by heightened volatility and mixed global cues.

The Nifty 50 opened on a weak footing in the previous session and briefly slipped below its intraday support of 24,700 before recovering nearly 133 points—making it an extremely volatile day. Despite this bounce, the index remains vulnerable unless it sustains a move above the 24,800 mark. A close above this level could potentially open the path toward the 25,000 level. On the downside, immediate support is located at 24,600, followed by 24,500—both of which may offer buying opportunities on dips.

The Bank Nifty displayed relative strength, rebounding nearly 413 points, suggesting that buying interest is still present. Key support levels are now seen at 55,730, followed by 55,500 and 55,000. Holding above these levels could provide scope for further upside, while resistance is expected around the 56,250–56,600 zone. A breakout above this band may lead to a rally toward the psychological 57,000 mark.

On the institutional front, Foreign Institutional Investors (FIIs) extended their selling streak for the ninth consecutive session on July 31, offloading equities worth Rs.5,588 crore. In contrast, Domestic Institutional Investors (DIIs) remained net buyers for the 19th straight session, investing Rs.6,372 crore into the market.

Given the prevailing conditions of elevated volatility and conflicting technical signals, traders are advised to follow a cautious "sell-on-rise" approach, especially when using leverage. Booking partial profits during rallies and maintaining tight trailing stop-losses is recommended to protect gains. Fresh long positions should be considered only if the Nifty manages to sustain above the 25,000 mark. Overall, the broader market undertone remains cautiously bullish, but close monitoring of key levels and global developments remains essential.

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