Pre-Market Analysis 06 Aug 2025: Nifty at 24,649 | Key Levels, Gift Nifty, Stock Picks & Sector Outlook
By CapitalKeeper | Pre Market Opening | Indian Equities | Market Moves That Matter
Pre-Market Analysis: Indian Stock Market Outlook for 06 August 2025
The Indian equity market enters midweek trading with caution and curiosity as investors brace for critical global and domestic triggers. On Tuesday, the benchmark indices ended lower after a volatile session, reflecting mixed sentiments ahead of the Reserve Bank of India (RBI) monetary policy announcement later this week and ongoing global macroeconomic uncertainty.
At Tuesday’s close (05 August 2025), the Nifty 50 settled at 24,649.55, down 77 points, while the Bank Nifty ended at 55,360.25, losing nearly 281 points. The BSE Sensex also closed at 80,710.25, down 308 points, and the Fin Nifty ended at 26,373.50. As we head into Wednesday’s session, all eyes are on the Gift Nifty, global market trends, and sectoral dynamics to gauge early trade direction.
Global Market Cues
US Markets
US equity indices closed marginally lower overnight amid persistent concerns about the Federal Reserve’s future policy stance. The Dow Jones Industrial Average slipped around 0.2%, while the S&P 500 and Nasdaq Composite also ended flat to negative. Treasury yields edged higher, reflecting cautious positioning ahead of upcoming US inflation data and labor market reports, which could determine the Fed’s September rate move.
Asian Markets
Early Asian trade is slightly mixed. Nikkei 225 is trading flat after sharp gains earlier this week, while Hang Seng and Shanghai Composite are showing marginal weakness as Chinese stimulus hopes fade. Investors remain watchful for any fresh measures from Beijing to stabilize property markets and boost domestic demand.
Commodities & Currency
- Brent crude continues to hover around $82 per barrel, with supply concerns offset by tepid demand outlooks.
- The US Dollar Index (DXY) is steady near 104.2, keeping emerging market currencies in check.
- INR vs USD is trading around 83.30 in the forward market, indicating stable domestic currency conditions.
Gift Nifty Indication
Gift Nifty is currently quoting around 24,720–24,740 levels, suggesting a mildly positive opening of about +50 to +70 points for Nifty 50. However, sustainability above key resistance levels remains critical for bulls to regain control.
Technical Outlook: Nifty 50
- Previous Close: 24,649.55
- Immediate Support: 24,420–24,430 (OI & channel support)
- Major Support Zone: 24,250–24,300 (swing low region)
- Immediate Resistance: 24,850–24,870 (OI & channel resistance)
- Breakout Level: Sustained close above 24,870 could fuel rally toward 25,050–25,150.
Analysis:
Nifty is consolidating in a broad 24,400–24,850 range, repeatedly testing lower supports but failing to sustain rallies beyond 24,800. Both hourly and daily charts indicate a range‑bound volatility phase, with declining India VIX (hovering near 12) suggesting muted fear in the system. A breakout on either side will decide near‑term momentum.
Technical Outlook: Bank Nifty
- Previous Close: 55,360.25
- Support Levels: 54,800 / 55,000 / 55,150
- Resistance Levels: 55,700 / 56,050 / 56,500
Analysis:
Bank Nifty remains stuck in a tight consolidation between 55,000–56,000. Private banking majors are showing resilience, but PSU banks are witnessing profit booking after recent rallies. A decisive move above 56,050 could push the index toward 56,700–57,000, whereas a breakdown below 54,800 may trigger short-term weakness.
Technical Outlook: Sensex
- Previous Close: 80,710.25
- Support: 80,100 / 79,850
- Resistance: 81,350 / 81,750
Sensex mirrors Nifty’s structure, forming a symmetrical triangle on the daily chart. A break above 81,350 could open gates for 82,000+, while failure to hold 80,100 may extend weakness toward 79,500.
Technical Outlook: Fin Nifty
- Previous Close: 26,373.50
- Support: 26,200 / 26,000
- Resistance: 26,550 / 26,720
Fin Nifty is consolidating but outperforming broader indices due to strength in insurance and NBFC names. Sustaining above 26,550 will be key for a further push toward 27,000.
Sectoral View
Likely Bullish Sectors
- Metals: Positive momentum amid rising global commodity prices and robust domestic demand outlook. Stocks like SAIL and Tata Steel are showing favorable chart structures.
- Energy & PSU: Select PSUs like NTPC and ONGC remain attractive on dips due to high dividend yields and strong earnings visibility.
- Auto: Two‑wheeler and commercial vehicle segments showing resilience with rural recovery themes.
Mixed to Cautious Sectors
- IT Services: Stable to mixed as global tech earnings drive sentiment. Watch for mid‑cap IT momentum.
- FMCG: Defensive buying seen, but valuations remain elevated; expect sideways movement.
- Pharma: Stock‑specific action likely, with USFDA approvals and specialty launches in focus.
FII & DII Data
- FII Index Long Positions: Around 23–24%, unchanged from last session, suggesting cautious positioning.
- Nifty PCR (Put/Call Ratio): Hovering at 0.78, indicating balanced positioning but slight put writing at lower strikes.
- India VIX: At ~12.5, down from last week, reflecting low volatility expectations in near term.
Key Stocks to Watch Today
1. Muthoot Finance (CMP: 2641)
- Derivative Play: 2500 PE at 37
- Strategy: Buy with SL below 28; target 45–55–60
- View: Strong support around 2500; any bounce likely to trigger short covering.
2. SAIL (CMP: 125)
- Cash Strategy: Accumulate on dips near 114–108 with SL 100; target 130–148
- View: Positive momentum supported by strong metal sector outlook and rising global steel prices.
3. Emami Ltd (CMP: 614)
- Trendline breakout; positive MACD on daily/weekly. Short‑term support at 580–590. Expect follow‑up buying.
4. Radico Khaitan (CMP: 2887)
- Resistance breakout with strong volumes. Support at 2650–2700. Short‑term bullish structure.
5. Skipper Ltd (CMP: 527)
- Trendline breakout with volume confirmation; MACD bullish. Support at 450–460.
Trading Strategy for 06 August 2025
- For Nifty:
- Buy on dips near 24,500–24,550 with SL 24,420 for targets 24,780–24,850.
- Fresh long positions only above 24,870 for 25,050–25,150 targets.
- For Bank Nifty:
- Buy near 55,000–55,150 with SL 54,800 for targets 55,700–56,050.
- Breakout above 56,050 could accelerate towards 56,700–57,000.
- Avoid aggressive shorting unless Nifty decisively breaks below 24,400 or Bank Nifty falls below 54,800.
Macro Watch
- RBI Policy Meeting: Scheduled later this week; market expects status quo on repo rate but commentary on inflation and growth to set tone.
- US Non-Farm Payrolls & CPI Data: Key global events for next week; may influence FII flows.
- Crude Oil & INR Movement: Continued monitoring as higher oil prices could pose risk to India’s macros.
Conclusion
Indian markets are poised for a cautious yet potentially volatile session on 06 August 2025. While global cues remain mixed, domestic factors like the RBI policy and corporate earnings will dictate near‑term sentiment. Technically, Nifty’s consolidation between 24,400–24,870 will be critical; a breakout above this zone could fuel a rally toward 25,050+, while a breakdown below 24,400 may invite fresh weakness. Traders should focus on stock‑specific opportunities in metals, PSU, and select financial names while maintaining strict stop losses and disciplined position sizing.
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