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Below the Quote on Pre-market comment 12th Aug 2025 by Amruta Shinde, Technical & Derivative Analyst, Choice Broking

Indian benchmark indices are likely to open on a flat to positive note today, as indicated by the GIFT Nifty, which suggests a marginal uptick of around 5 points in the Nifty 50. Market sentiment remains cautiously optimistic, though tempered by persistent volatility and mixed global cues.

In the previous session, the Nifty opened flat but staged a strong recovery, rebounding over 230 points to close near the prior day’s high. This price action formed a bullish candlestick pattern, indicating sustained buying interest and upward momentum. Technically, a decisive move above 24,650 could open the door for an upside toward 24,850, while immediate support lies at 24,500 and 24,330 — both seen as attractive zones for fresh long positions.

The Bank Nifty also saw a sharp intraday reversal of nearly 580 points, forming a strong bullish candle that reflected continued buying at lower levels. It found firm support near the 20-week Exponential Moving Average (EMA), with key supports now placed at 55,320 and 55,000. Resistance is seen in the 55,700–56,000 range, and a convincing breakout above this zone could lead to a rally toward the psychological 56,200 mark.

 On the institutional front, Foreign Institutional Investors (FIIs) sold equities worth a little over Rs.1,200 crore on August 11, while Domestic Institutional Investors (DIIs) were net buyers to the tune of ?5,972 crore.

Given the current environment of uncertainty and elevated volatility, traders are advised to maintain a cautious “wait-and-watch” approach, particularly when dealing with leveraged positions. Booking partial profits on rallies and employing tight trailing stop-losses remain prudent strategies to manage risk. Fresh long positions should be considered only if the Nifty sustains above the 24,750 level. Overall, the market outlook remains cautiously bullish, with close monitoring of key breakout levels and global developments recommended.

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