Synopsis : Indian markets opened higher on August 4, with Sensex up by over 250 points and Nifty steady near 24,650. Despite the positive start, technical indicators suggest caution as Federal Bank slides 5.5%.
Market Overview – August 04, 2025:
Indian benchmark indices kicked off the new trading week on a slightly positive note amid mixed global and domestic signals. The NSE Nifty 50 opened 35 points higher at 24,600, while the BSE Sensex climbed 69 points to start at 80,669, later extending gains by over 250 points in intra-day trade.
Bank Nifty opened 100 points higher at 55,716, while Nifty Midcap slipped 17 points to 56,620, showing subdued performance among broader markets.
Expert Commentary & Market Sentiment:
According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, the market structure continues to look fragile with a bearish formation on both daily and weekly charts, staying below key technical averages (20-day and 50-day SMA).
He added:
Support zone: 24,500 – if breached, could trigger fresh selling
Resistance: A move above 24,650 could shift sentiment positively toward 24,800–25,050 levels
Meanwhile, Prashanth Tapse of Mehta Equities pointed out that continued FII selling, uncertain US-India trade pacts, and mixed Q1 earnings are dampening investor mood. However, weaker US jobs data may push the Fed towards a rate cut in September, which could eventually support markets globally.
Early Gainers & Laggards (Nifty 50):
Top Gainers:
Bharat Electronics
Grasim Industries
Shriram Finance
Tata Steel
Jio Financial Services
Top Laggards:
Infosys
Tech Mahindra
Zomato (Eternal)
HCL Technologies
Coal India
Major Underperformer:
Federal Bank took a sharp 5.5% dip, underperforming significantly during the early session.
Key Stocks Under Watch:
Reliance Industries, HDFC Bank, ITC, Mahindra & Mahindra, and Bharat Electronics were under pressure despite the broader uptrend, indicating selective weakness.
Global & Macro Factors:
GIFT Nifty signaled a positive open but market momentum remains capped.
US July jobs data disappointed, potentially prompting a September Fed rate cut.
Global investors remain cautious due to Trump's trade policies, and geopolitical trade tensions continue to cloud sentiment.
Outlook Ahead:
Watch for movement near 24,650 – a breach above could lead to a short-term rally. However, any break below 24,500 may renew selling pressure, dragging markets further toward 24,200 or lower.
Disclaimer : This article is for informational purposes only and not intended as investment advice. Please consult a licensed financial advisor before making any investment decisions.
