The previous day’s sluggish closing saw the Nifty index continue its lackluster performance for the fourth straight session. It dropped 75.35 points to settle at 24,574.20, staying close to the psychologically significant support zone of 24,500. The RBI’s monetary policy decision had minimal impact on the Nifty Bank index, which ended the day 50.90 points higher at 55,411.15, well over the key psychological barrier of 55,000. The India VIX ended the day at 11.96, up just 2.11%. The fact that volatility is still low and centered around the 11-mark indicates that the market overall is now pricing in consolidation rather than a sharp decline, even in the face of approaching macro events.
Nifty Outlook Today
“The index continues to trade within a tightly knit consolidation range of 24,500-24,750, as evidenced by successive small-bodied candles on the daily chart. A directional breakout from this band will likely dictate the next phase of market momentum. Until then, the Nifty may continue its sideways to choppy trajectory. The 100-day exponential moving average (100-DEMA), currently near 24,595, has consistently acted as a support threshold. However, a decisive break down below the 24,535-24,500 zone could trigger further downside toward 24,300-24,250,” commented Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.
“On the upside, immediate resistance is seen around 24,760, coinciding with the 10-DEMA. Unless the index convincingly reclaims this level, any rebound is expected to encounter selling pressure. The Relative Strength Index (RSI) remains near 40, underscoring sustained bearish undertones. Overall, the structure remains fragile, and any short-lived pullbacks could serve as opportunities to initiate fresh short positions, keeping the market in a pendulum-like pattern until a clear breakout emerges,” he further added.
Bank Nifty Outlook Today
“The index has yet to provide any significant technical breakout, although a Bullish Harami reversal candlestick pattern has emerged on the daily chart. However, confirmation of this potential reversal will only come with a sustained close above the 55,700 mark. Every minor uptick continues to attract fresh selling, reinforcing the prevailing downward bias. The index remains significantly stretched below its short-term mean, and unless a pullback toward the 10-day exponential moving average (DEMA) – currently near 55,900 – materializes, price action will likely remain unstable and indecisive. The 10- and 20-DEMA zones, now placed around 55,900-56,200, serve as strong overhead hurdles,” Dhupesh Dhameja stated.
“On the downside, the 55,100-55,000 band continues to offer crucial support on lower timeframes. A decisive break down below this support area could accelerate selling momentum and drag the index toward the next major support zone at 54,500-54,300. From a momentum standpoint, the Relative Strength Index (RSI) remains suppressed below the 40 level, indicating firm bearish control. A meaningful reversal would require a volume-backed move, ideally led by institutional buying, to shift the ongoing trend,” he recommended.
Stocks To Buy Today
Sumeet Bagadia, executive director of Choice Broking, recommended purchasing two stocks on Thursday, August 7, following the RBI MPC policy statement to hold the repo rate at 5.5% after three previous meetings saw a total cut of 100 basis points.
Authum Investment & Infrastructure
Buy AIIL in Cash @ Rs 2900.1, Stop-loss @ Rs 2800, Target @ Rs 3105
AIIL is trading at 2900.1 and continues to exhibit strong bullish momentum, as reflected by its steadily rising price structure and consistent upward swing pattern. The stock has recently been consolidating over the past few days but now it has approached its all-time high of 2904, and a breakout above this significant level could trigger renewed buying interest and further upside potential.
Supporting the strength of the trend, the 20, 50, 100, and 200-day Exponential Moving Averages are all trending upwards, highlighting solid demand and positive sentiment across various timeframes. With the price holding well above these key moving averages, the technical setup remains favourable.
A confirmed close above 2904 could pave the way for a swift move toward the short-term target of 3105. Market participants should closely monitor price behaviour near this resistance zone for signs of a breakout and continuation of the upward trend.
On the downside, immediate support is located at 2850. The Relative Strength Index (RSI) is currently at 61.77 and trending upward, reflecting growing buying momentum. To manage risk effectively, a stop-loss at 2800 is suggested to guard against any unexpected market reversals.
In conclusion, based on the technical analysis and current market conditions, AIIL presents a promising buying opportunity for those aiming for a 3105 target, provided that appropriate risk management strategies are in place.
Tube Investments of India
Buy TIINDIA in Cash @ Rs 2960.20, Stop-loss @ Rs 2856, Target @ Rs 3167
TIINDIA is currently trading at ₹2,960 after rebounding from a crucial support zone, notably taking strong support at the 200-week Exponential Moving Average (EMA). On the daily chart, the stock has formed a bullish candlestick pattern and is now poised to break out of a recent consolidation phase.
A decisive close above the key resistance level of ₹3,020 would confirm this breakout and signal a renewed uptrend, potentially paving the way for a short-term target of ₹3,167.On the downside, the ₹2,900 level serves as a critical support zone, providing a cushion against minor pullbacks.
The stock has already closed above its 20-day and 50-day EMAs, reinforcing the bullish sentiment. It is currently approaching the 200-day EMA, and a sustained close above this level would further validate the strength of the ongoing trend reversal.
Momentum indicators also support the bullish bias. The Relative Strength Index (RSI) stands at 55.34 and is trending upward, reflecting improving momentum and an increasing likelihood of further upside.
Given the constructive technical setup, traders may consider initiating long positions at the current market price of ₹2,960.20. A stop-loss can be placed at ₹2,856 to manage downside risk. While the technical indicators suggest a favorable outlook, traders are advised to exercise prudent risk management and adopt appropriate position sizing to navigate potential short-term volatility.