Quote on Pre-Market Comment 31th July 2025 by Hardik Matalia, Research Analyst, Choice Broking Ltd
Below the Quote on Pre-Market Comment 31th July 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 suggests a significant downtick of around 189 points in the Nifty 50. Market sentiment remains cautiously optimistic amid heightened volatility and mixed global cues.
On the technical front, the Nifty formed a bullish hammer candlestick and closed above the previous day’s high, signaling the potential for a follow-up rally. The index is currently trading above its 100-day EMA, reflecting underlying strength. A close above the 50-day EMA at 24,935 would further confirm a bullish reversal. If this level is sustained, the index could advance toward 25,200 and eventually 25,800 in the coming sessions. On the downside, support is placed in the 24,590–24,400 zone, which could act as a potential area for dip-buying.
Bank Nifty, after breaking down from a narrow consolidation range, has retested its breakdown level and is currently hovering around a crucial zone. A sustained move above 56,275 could lead to a rally toward 57,000 and 57,630. Meanwhile, support is seen at 55,500–55,150. The RSI stands at 44.14 and remains flat, indicating the absence of strong directional momentum at present. However, the broader price structure continues to reflect a bullish bias, making dips a buying opportunity for positional traders.
In terms of institutional activity, Foreign Institutional Investors (FIIs) extended their selling streak for the eighth consecutive session on July 30, offloading equities worth Rs.850 crore. Conversely, Domestic Institutional Investors (DIIs) maintained their buying momentum for the 18th straight session, purchasing equities worth Rs.1,829 crore on the same day.
Given the current landscape of heightened volatility and mixed technical signals, traders are advised to adopt a cautious "sell-on-rise" strategy, particularly when operating with leverage. Booking partial profits on rallies and employing tight trailing stop-losses is essential to manage risk. Fresh long positions should only be initiated if the Nifty sustains above the 25,000 mark. While the broader market undertone remains cautiously bullish, it is crucial to monitor key technical levels and global developments closely.
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