After staging a strong comeback this week, the Indian equity benchmarks are expected to remain on a positive footing when trading resumes on Monday, August 3. After extending their winning streak to a third straight session on Friday, technical analysts believe the market’s near-term trend remains constructive, although profit booking near key resistance levels could keep volatility elevated.
Nifty, Sensex at close on Friday, July 31
At close on Friday, the 30-share Sensex climbed 166.49 points, or 0.21 per cent, to settle at 78,094.64, while the Nifty advanced 66.45 points, or 0.27 per cent, to close at 24,383.60.
The benchmarks were supported by buying in financials, auto and heavyweight stocks even as IT shares witnessed profit booking after their strong rally in July.
Nifty, Sensex top gainers on Friday, July 31
Technical analysts expect the broader market tone to remain constructive, helped by healthy market breadth and domestic buying. However, profit booking at higher levels and persistent weakness in IT stocks could introduce intermittent volatility.
They further said the investors should monitor 24,400 on Nifty and 78,300 on Sensex as pivotal breakout triggers.
Sensex Prediction for Monday, August 3
Sachin Gupta, VP – Technical Research, Choice Equity Broking, said the Sensex, from a technical perspective, continues to maintain a positive structure, with 77,800-77,600 acting as the immediate support zone.
As long as the index holds above this range, the overall trend is expected to remain bullish, he said.
“On the upside, 78,300–78,500 remains the immediate resistance zone, and a sustained breakout above these levels could trigger the next leg of the rally towards 78,800–79,000,” Gupta added.
Sectorally, Media, Auto, Oil & Gas, Energy, Pharma, Infrastructure, and PSU Banks led the gains, reflecting broad-based participation across domestic-focused sectors. The broader market remained resilient, with Midcap and Smallcap indices outperforming the benchmark indices, indicating healthy risk appetite among investors despite selective weakness in IT, Gupta further stated.
Overall, Gupta said the undertone for the market remains constructive, supported by strong domestic participation and improving breadth. However, profit booking at higher levels and weakness in the IT sector may continue to create intermittent volatility.
“Traders should closely monitor the 24,400 level on the Nifty and 78,300 on the Sensex, as a decisive move above these levels could strengthen bullish momentum, while holding above key support zones would keep the medium-term outlook positive,” he added.
- Immediate Support Zone: 77,800 – 77,600
- Immediate Resistance Zone: 78,300 – 78,500
- Upside Targets: A sustained breakout above 78,500 could trigger the next leg of the rally towards 78,800-79,000
Nifty Prediction for Monday, August 3 by Nandish Shah
Nandish Shah, Deputy Vice President at HDFC Securities, said the Nifty has now above its 200 DEMA and swing-high resistance, reinforcing the near-term positive bias.
“Next resistance is seen at 24,530 (077 July swing high), followed by 24,778 (200-day SMA). Support remains intact around 24,100,” Shah stated.
Shah said, “Nifty extended its winning run to a third straight session, rising 66 points to close at 24,383. The index opened 44 points higher and built on its gains in the first half, hitting an intraday high of 24,429 before profit booking emerged in the latter part of the session. NSE cash market volumes rose 5% from the previous session. With four of the five trading sessions this week ending in the green, Nifty logged a weekly gain of 2.59%.”
Sectoral performance was broadly positive. Excluding IT, FMCG and Consumer Durables, all sectoral indices closed in the green. Media, Auto and Financial Services posted the strongest gains, he said.
Broader markets also edged higher along with the benchmark. Both the Nifty Midcap 100 and Smallcap 100 rose 0.44% each. Market breadth turned positive, with the BSE advance-decline ratio standing at 1.55, indicating renewed buying interest in the midcap and smallcap space after the previous day’s correction, Shah further stated.
Meanwhile, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, believes the benchmark is approaching an important technical hurdle near 24,350-24,400, where multiple resistance indicators converge, including the July 8 gap, the July 17 swing high and the 200-day Exponential Moving Average (EMA).
Nifty Prediction for Monday, August 3 by Nagaraj Shetti
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said, the Nifty continued with upside momentum for the third consecutive sessions on Friday and closed the day higher by 66 points.
He further stated that a small positive candle was formed on the daily chart with upper and lower shadow. “Technically, this market action indicates a formation of high wave or doji type candle pattern at the highs which signals minor volatility in the market at the hurdles,” Shetti added.
“Nifty is currently placed at the important cluster resistance round 24350-24400 levels (previous opening down gap of 8th July, previous swing high of 17th July and 200-day EMA). Hence, there is a possibility of consolidation movement or minor dip around the resistance before showing decisive breakout,” the expert stated.
The underlying trend of Nifty continues to be positive. A sustainable upside above 24400 could pull Nifty towards 24600-24700 levels in a quick period of time. Immediate support is placed at 24200, he concluded.
- Immediate Support: 24,200-24,100
- Key Cluster Resistance: 24,350-24,400
- Upside Targets: A decisive move above the 24,400 level could push the index quickly toward 24,530 (July swing high), followed by 24,600 – 24,778 (200-day SMA).
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
