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Below the Quote on Pre- Market Comment 07th Aug 2025 by Hardik Matalia, Research Analyst, Choice Broking Ltd

Indian benchmark indices are expected to open on a negative note today, as suggested by the GIFT Nifty, which indicates a decline of around 60 points in the Nifty 50. Market sentiment remains cautiously optimistic, dampened by persistent volatility and mixed global cues.

In the previous session, the Nifty index opened flat but faced selling pressure right from the start, remaining volatile throughout the day. It formed a bearish candlestick pattern with both upper and lower shadows on the daily chart, reflecting market indecision and profit booking at higher levels. Immediate support is placed at 24,500, with stronger support near 24,400—a breach below this zone could accelerate the downside. On the upside, resistance levels are observed at 24,700, 24,800, and 25,000. A decisive breakout above the 25,000 mark would be crucial to reverse the prevailing downtrend and attract fresh buying interest.

The Bank Nifty also experienced a volatile session amid the RBI policy announcement but managed to close slightly positive, gaining 50.90 points to end at 55,411.15. The index formed an Inside Bar candlestick on the daily chart, characterized by a small bullish body and wicks on both ends, indicating a tug-of-war between bulls and bears. Key support levels lie in the 55,200–55,000 zone, and a breakdown below this range could lead to further downside pressure. On the higher side, resistance is seen at 55,700, with a major hurdle at 56,000. A breakout above 56,000 may potentially revive bullish sentiment.

On the institutional activity front, Foreign Institutional Investors (FIIs) continued their selling spree for the ninth consecutive session on 6th August, offloading equities worth Rs.4,999.1 crore. Conversely, Domestic Institutional Investors (DIIs) maintained their buying momentum for the 19th straight session, investing a substantial Rs.6,679.4 crore in the market.

Given the elevated volatility and mixed technical cues, traders are advised to adopt a cautious "sell-on-rise" strategy, particularly when using leverage. It is prudent to book partial profits during rallies and maintain tight trailing stop-losses to safeguard gains. Fresh long positions should only be considered if the Nifty sustains above the 24,750 level. Overall, the broader market outlook remains cautiously bullish, but close attention to key technical levels and global developments remains essential.

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