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Below the Quote on Pre-market comment 8th Aug 2025 by Amruta Shinde, Technical & Derivative Analyst, Choice Broking

Indian benchmark indices are expected to open on a flat to negative note today, as suggested by the GIFT Nifty, which indicates a decline of around 31 points in the Nifty 50. Market sentiment remains cautiously optimistic, dampened by persistent volatility and mixed global cues.

The Nifty opened on a weak note, falling nearly 225 points in early trade. However, it staged a strong recovery, rebounding over 250 points to end above the previous day’s close. The index formed a bullish candlestick pattern, reflecting renewed buying interest and momentum. From a technical standpoint, a sustained move above the 24,650 level could open the door for an upside toward 24,850. On the downside, immediate support is placed at 24,550, followed by 24,400 — both of which could offer attractive entry points for fresh long positions.

The Bank Nifty also witnessed significant intraday swings, initially dropping nearly 350 points. However, it took strong support near the 100-day Exponential Moving Average (EMA) and rebounded sharply by around 540 points. The index formed a bullish candle, indicating the presence of buyers at lower levels and closed above the previous day’s close. Key support levels are now seen at 55,200 and 55,000. Holding above these zones could lead to further gains, while resistance lies in the 55,700–56,000 region. A convincing breakout above this resistance band could trigger a rally toward the psychological 56,200 mark.

The Foreign institutional investors (FIIs) sold equities nearly Rs 4,997 crore on August 7, while Domestic institutional investors (DIIs) bought equities worth Rs 10864 crore on the same day.

Considering the current market environment marked by uncertainty and elevated volatility, traders are advised to maintain a cautious “wait and watch” stance, particularly when dealing with leveraged positions. Booking partial profits on rallies and using tight trailing stop-losses are recommended strategies to manage risk. Fresh long positions should be considered only if the Nifty sustains above the 24750 level. Overall, the market sentiment remains cautiously bullish, with traders advised to keep a close eye on key breakout levels and global developments.

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