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Below the Quote on Pre-Market Comment 04th Aug 2025 by Hardik Matalia, Research Analyst, Choice Broking Ltd

Indian benchmark indices are expected to open on a positive note today, as suggested by the GIFT Nifty, which indicates a notable uptick of around 70 points in the Nifty 50. Market sentiment remains cautiously optimistic, although heightened volatility and mixed global cues continue to weigh on investor confidence.

On the technical front, the Nifty has breached its 100-day Exponential Moving Average (EMA), with the next major support located near the 200-day EMA at 24,180, followed by the psychological level of 24,000. Conversely, if the index manages to reclaim the 24,750 level, a short-term rebound toward the 25,250–25,500 zone cannot be ruled out. However, persistent volatility and visible resistance near key option strikes suggest continued overhead supply pressure.

The Bank Nifty exhibited weakness, declining nearly 344 points and closing in the red for the fifth consecutive week which indicating that selling pressure remains active. Key support levels are now placed at 55,400, followed by 55,150 and 55,000. Sustaining above these levels could offer room for a mild recovery, while immediate resistance is seen in the 55,700–55,800 zone. A breakout above this band may trigger a rally toward the psychological 56,000 level.

From an institutional perspective, Foreign Institutional Investors (FIIs) extended their selling streak for the tenth consecutive session on August 1, offloading equities worth ?3,366 crore. In contrast, Domestic Institutional Investors (DIIs) continued their buying for the 20th straight day, investing ?3,186 crore on the same day.

Given the prevailing environment of uncertainty and elevated volatility, traders are advised to maintain a cautious "wait and watch" stance, particularly when dealing with leveraged positions. It is recommended to book partial profits during rallies and apply tight trailing stop-losses to manage risk effectively. Fresh long positions should only be considered if the Nifty sustains above the 24,750 mark. Overall, while the market sentiment remains cautiously bullish, close monitoring of key technical levels and global developments is essential.

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