Stock Market Prediction Today, 7 August: After a muted and range-bound trading session on Thursday, where domestic benchmark indices ended higher, the stock markets are likely to maintain a sideways-to-bullish stance on Friday, August 7. Technical analysts have recommended a buy-on-dips strategy as both the NSE Nifty 50 and BSE Sensex continue to trade above their key moving averages.
Indian benchmark indices ended higher on Thursday, supported by easing crude oil prices, the Reserve Bank of India’s steady policy stance, and selective buying in heavyweight, banking and energy stocks.
The Sensex settled at 78,954.76, gaining 373.76 points or 0.48 per cent, while the NSE Nifty closed at 24,636, up 11.35 points or 0.05 per cent.
Stock Market Prediction Today, August 7
While key resistance levels capping the upside remain intact, strong technical support across major moving averages suggests that dips will continue to attract buying interest.
According to Sachin Gupta, VP – Research, Technical Research at Choice Broking, the broader bullish structure remains intact despite the consolidation on Thursday. He further stated the Nifty has formed a small-bodied candle on the daily chart, signalling continued consolidation after the recent rally.
Despite the muted session on Thursday, Gupta said the Nifty continued to hold above its key moving averages on the daily chart, indicating that the broader bullish structure remains intact.
“Indian equity benchmark Nifty 50 ended the session almost unchanged at 24,636.00, up 11.35 points (+0.05%), after a subdued and range-bound trading session. The index opened at 24,641.00 and traded within a narrow range of 24,604.15–24,677.05, reflecting a lack of directional conviction throughout the day,” he said.
Intraday price action remained confined within a tight consolidation band, with neither buyers nor sellers establishing clear dominance, Gupta added.
“The RSI strengthened to 62.20, indicating that momentum continues to favour the bulls despite the lack of follow-through buying. Sector-wise, PSU Bank, Chemicals, Oil & Gas, Bank and Consumer Durables witnessed buying interest, whereas Realty, Media, Auto, Metal and IT ended under pressure,” Gupta stated.
He expects the index to trade in the 24,400-24,800 range on Friday. “Immediate support is placed at 24,400–24,450, while 24,750–24,800 remains the key resistance zone. A sustained move above resistance could trigger fresh buying momentum, whereas a break below support may invite short-term profit booking,” Gupta concluded.
- 20-Day EMA – 24,286.46
- 50-Day EMA – 24,113.22
- 100-Day EMA – 24,171.57
- 200-Day EMA – 24,380.01
Echoing a similar view, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said Thursday’s price action indicates consolidation after the sharp breakout witnessed earlier this week.
“After showing weakness and sharp uptick in the closing auction session-CAS over the last three sessions, Nifty shifted into a narrow range of around 75 points on Thursday and closed the day marginally higher amidst lacklustre movement. Nifty closed with marginal uptick towards the new closing session,” he said.
He further said a small candle was formed on the daily chart after the weakness of last two sessions. “This market action signals a consolidation movement after a sstellar upside of 3rd Aug. Post decisive breakout of 24300-24400 levels recently, Nifty has retraced nearly down to the support of previous breakout area as per the concept of change in polarity,” Shetti added.
“The underlying trend of Nifty remains positive amidst choppy movement. Any further weakness down to 24400-24300 could be a buy on dips opportunity. A decisive move above 24800 could open further upside towards 25150 levels in the near term,” the analyst concluded.
Sensex Prediction Today, August 7 by experts
On the Sensex, Hitesh Tailor, Technical Research Analyst at Choice Broking, said the index continues to display resilience despite intermittent profit booking near the 79,000 mark.
From a technical perspective, Sensex continues to trade above its 20-Day, 50-Day, 100-Day and 200-Day EMA, indicating strengthening momentum across both the short-term and medium-term trend, Tailor said.
“The successful close above the 200-Day EMA reflects improving market structure and reinforces the ongoing recovery. Additionally, the RSI has strengthened to 63.64, remaining above the 60 mark, which indicates sustained positive momentum and improving buying strength,” he added.
Price action on the daily chart indicates that Sensex witnessed profit booking after approaching the 79,000 mark but managed to recover from lower levels, highlighting sustained buying interest on declines.
Tailor expects 78,300-78,600 to act as the immediate support zone, while 79,100-79,300 remains the immediate resistance area. “A sustained move above this hurdle could strengthen the ongoing recovery momentum,” Tailor said.
“The broader outlook remains sideways to bullish, with the index continuing to exhibit resilience on declines. As long as buying interest emerges near support levels, the prevailing trend favours a buy-on-dips approach, while a sustained move above the immediate resistance zone could provide fresh momentum to the ongoing recovery,” the analyst added.
SEBI-registered market analyst Vipin Dixena maintained Sensex continued its recovery, extending gains after the RBI’s monetary policy announcement.
“The index remains comfortably above the 50-EMA on intraday, indicating that the short-term trend continues to favour the bulls. Buying interest emerged from lower levels, while the RSI has strengthened to around 64, reflecting improving momentum,” he noted.
According to Dixena, 79,000 is the immediate resistance zone for the index. A decisive breakout above this level could push the Sensex towards 79,200-79,400, while 78,650-78,700 is expected to provide near-term support.
“A sustained move above this level could trigger fresh buying momentum, opening the door towards 79,200–79,400 in the near term. On the downside, 78,650–78,700 is likely to act as the first support. As long as Sensex holds above these levels, the short-term bias is expected to remain positive,” Dixena concluded.
Sensex, Nifty top gainers and losers
Buying interest was witnessed in pharmaceuticals, healthcare, chemicals, realty, oil and gas, and select mid-cap stocks. Among sectoral indices, Nifty PSU Bank emerged as the top gainer, rising over 2 per cent, followed by Nifty Chemicals, which gained more than 1 per cent.
(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.)
