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Below the Quote on Pre-market comment for Wednesday August 5 by Hitesh Tailor, Technical Research Analyst at Choice Broking

Indian equity markets are expected to open on a strong positive note, with Gift Nifty trading around 24,745, up by 165 points, indicating robust opening cues for domestic indices. Global market sentiment remains supportive after optimism surrounding stronger-than-expected U.S. corporate earnings and easing concerns over global trade, while investors also welcomed signs of stability in major global economies. The combination of firm global cues and strong Gift Nifty indications is likely to support buying interest at the opening, although traders may remain watchful for profit booking near higher levels after the recent rally.

In the previous session on 4th August 2026, Nifty 50 ended at 24,614.90, down 159.40 points (-0.64%), as profit booking emerged after the recent rally. The index opened with a gap-down at 24,703, which also marked the day's high, and remained under pressure for most of the session before recovering sharply during the closing auction to settle well above its intraday low. Technically, the long lower wick on the daily candlestick indicates buying support at lower levels, while the RSI at 61.77 suggests the broader momentum remains positive despite the correction. From a technical perspective, 24,400–24,500 is expected to act as the immediate support zone, while 24,750–24,800 remains the key resistance area.

In the previous session on 4th August 2026, Bank Nifty closed at 57,907.20, down 340.75 points (-0.58%), after witnessing profit booking following a weak opening. The index remained under selling pressure for most of the session before strong buying interest emerged near the 57,400 zone, helping it recover from the day's low and indicating support around the 20-day EMA. Technically, the broader undertone remains Sideways to Bullish despite the corrective move. Immediate support is placed at 57,400–57,500, while resistance is seen around 58,500–58,600.

Foreign Institutional Investors (FIIs) remained strong net buyers on 4th August 2026, purchasing Indian equities worth ?2,446 crore, reflecting sustained confidence in domestic markets. In contrast, Domestic Institutional Investors (DIIs) turned net sellers, offloading equities worth ?936 crore, as they booked profits following the recent market rally.

Despite the previous session's profit booking, the overall market structure continues to remain favourable, supported by strong global cues, positive Gift Nifty indications, and sustained FII buying. The recovery from intraday lows also highlights buying interest at lower levels. As long as key support zones remain intact, the broader trend is likely to stay positive, while a decisive move above immediate resistance could accelerate the next leg of the rally.

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