Technical Analysis for 11 Aug 2025:
Key Levels and Trade Setups
Welcome to Option Matrix India’s comprehensive technical analysis for trading on August 11, 2025. This article provides detailed insights into the NIFTY 50, Bank Nifty, and SENSEX indices, focusing on recent price movements, key support and resistance levels, and actionable trade setups. Our goal is to empower traders with precise market predictions (Nifty Predictions, Bank Nifty Predictions & Sensex Predictions) and strategies to navigate the Indian stock market effectively. With global markets showing mixed signals, understanding technical patterns is crucial for informed decision-making.
Technical Analysis for NIFTY 50
Daily Candle Pattern
On August 8, 2025, NIFTY 50 formed a bearish candle, opening at 24,544.25 and closing at 24,362.75. The high was 24,585.30, and the low was 24,338.50, reflecting strong selling pressure throughout the session. This bearish candle suggests caution for traders, as the market may continue to test lower levels unless a reversal pattern emerges.
Key Levels
- Support: The low of August 8 at 24,338.50 is a critical support level. This level aligns closely with recent price action and could act as a base for a potential bounce.
- Resistance: Recent highs around 24,700–24,736 serve as resistance. The 24,480 level is particularly significant, as it has acted as a pivot point in recent sessions.
Nifty Predictions
Our analysis identifies a no-trading zone for Nifty 50 between 24,338 and 24,480, where the market is likely to consolidate without a clear direction. Traders should wait for a breakout or breakdown before initiating positions. The probable Nifty predictions are as follows.
- Bullish Scenario:
- Condition: A 15-minute candle closes above 24,480.
- Targets: 24,560, 24,636, 24,700.
- Stop-Loss: Place below 24,480 to protect against false breakouts.
- Bearish Scenario:
- Condition: A 15-minute candle closes below 24,338.
- Targets: 24,270, 24,150, 24,055.
- Stop-Loss: Place above 24,338 to manage risk.
- Alternative Scenarios:
- If NIFTY crosses above 24,480 but closes below it in a 15-minute candle, consider shorting with targets at 24,400 and 24,350.
- If NIFTY crosses below 24,337 but closes above it in a 15-minute candle, consider buying with targets at 24,400 and 24,480.
- Key Rule: Avoid bullish trades in bearish candles and bearish trades in bullish candles to align with market momentum.
This strategy leverages price action and short-term candle patterns to maximize trading opportunities while minimizing risk.
Technical Analysis for Bank Nifty
Daily Candle Pattern
Bank Nifty also formed a bearish candle on August 8, opening at 55,609.35 and closing at 54,952.40. The high was 55,617.10, and the low was 54,930.50, indicating sustained selling pressure in the banking sector.
Key Levels
- Support: The low of August 8 at 54,930.50 is a key support level.
- Resistance: The range of 55,600–55,750 acts as resistance, based on recent highs.
Bank Nifty Predictions
Our analysis identifies a no-trading zone for Bank Nifty between 54908 and 55278, where the market is likely to consolidate without a clear direction. Traders should wait for a breakout or breakdown before initiating positions. The probable Bank Nifty predictions are as follows.
- Bullish Scenario:
- Condition: A 15-minute candle closes above 55278.
- Targets: 55552, 55801
- Stop-Loss: Place below 54900 to protect against false breakouts.
- Bearish Scenario:
- Condition: A 15-minute candle closes below 54908.
- Targets: 54605, 54275.
- Stop-Loss: Place above 55278 to manage risk.
- Alternative Scenarios:
- If NIFTY crosses above 55278 but closes below it in a 15-minute candle, consider shorting with targets at 55000 and 54900.
- If NIFTY crosses below 54908 but closes above it in a 15-minute candle, consider buying with targets at 55270 and 55500.
- Key Rule: Avoid bullish trades in bearish candles and bearish trades in bullish candles to align with market momentum.
This strategy leverages price action and short-term candle patterns to maximize trading opportunities while minimizing risk.
Technical Analysis for SENSEX
Daily Candle Pattern
SENSEX opened at 80,478.01 and closed at 79,841.75 on August 8, forming a bearish candle. The high was 80,544.40, and the low was 79,778.48, reflecting a similar trend of selling pressure.
Key Levels
- Support: The low of August 8 at 79,778.48 is a critical support level.
- Resistance: The range of 81,000–81,093 serves as resistance, based on recent highs.
Sensex Predictions
Traders are advised to closely observe for a breakout above 80,250, signaling potential bullish opportunities, or a breakdown below 79,778, which may indicate bearish setups. Employing 15-minute candle closes will provide confirmation for both entry and exit strategies.
- Bullish Scenario:
- Condition: A 15-minute candle closes above 80,250.
- Targets: 80480, 80827, 81095.
- Stop-Loss: Place below 79778 to protect against false breakouts.
- Bearish Scenario:
- Condition: A 15-minute candle closes below 79778.
- Targets: 79660, 79343, 79076.
- Stop-Loss: Place above 80300 to manage risk.
📊 Market Overview (August 4 – August 8, 2025)
The Indian stock market experienced volatile swings over the past five sessions, culminating in a significant drop on August 8, 2025. Here's a performance breakdown of the NIFTY 50, Bank Nifty, and SENSEX indices across the last five trading days:
August 4, 2025
- NIFTY 50: 24,722.75 (+0.64%)
- Bank Nifty: 55,619.35 (0.00%)
- SENSEX: 81,018.72 (+0.52%)
August 5, 2025
- NIFTY 50: 24,649.55 (-0.30%)
- Bank Nifty: 55,360.25 (-0.47%)
- SENSEX: 80,710.25 (-0.38%)
August 6, 2025
- NIFTY 50: 24,574.20 (-0.31%)
- Bank Nifty: 55,411.15 (+0.09%)
- SENSEX: 80,543.99 (-0.21%)
August 7, 2025
- NIFTY 50: 24,596.15 (+0.09%)
- Bank Nifty: 55,521.15 (+0.20%)
- SENSEX: 80,623.26 (+0.10%)
August 8, 2025
- NIFTY 50: 24,362.75 (-0.95%)
- Bank Nifty: 54,952.40 (-1.02%)
- SENSEX: 79,841.75 (-0.97%)
The significant drop on August 8 was likely influenced by global market volatility, particularly concerns over US tariff policies, including a 25% tariff on Indian imports due to purchases of Russian oil, as well as weak corporate earnings in sectors like IT and financials. Defensive sectors like FMCG and Pharma outperformed, indicating a shift toward safer investments amid uncertainty.
Sector Analysis
On August 8, 2025, most sectors closed lower, with IT and financials underperforming due to weak earnings and concerns like TCS’s job cut announcements. However, Nifty FMCG and Nifty Pharma indices outperformed, indicating a shift toward defensive sectors amid market uncertainty. Traders may consider focusing on these sectors for relative stability.
Volume Analysis
Trading volume for NIFTY 50 on August 8 was 287.64 million shares, significantly lower than the 616.74 million shares on August 7. This decrease in volume alongside a price drop suggests that the selling pressure may lack strong conviction, potentially signaling a pause or reversal. Traders should monitor volume trends on August 11 to confirm market direction.
Using Technical Indicators
To enhance the trade setups, consider incorporating technical indicators:
- Relative Strength Index (RSI): An RSI below 30 could indicate oversold conditions, suggesting a potential bounce, while above 70 may signal overbought conditions.
- Moving Average Convergence Divergence (MACD): A bullish crossover could confirm upward momentum, while a bearish crossover may support short positions.
- Bollinger Bands: A move toward the lower band may indicate oversold conditions, while a touch of the upper band could signal overbought conditions.
For example, if NIFTY approaches the lower Bollinger Band with an RSI below 30, it may suggest a buying opportunity near the 24,338 support level.
Risk Management and Trading Psychology
Successful trading requires disciplined risk management and emotional control:
- Set Stop-Loss Orders: Place stop-losses based on risk tolerance and market volatility to limit losses.
- Position Sizing: Risk no more than 1–2% of trading capital per trade to preserve capital.
- Avoid Overtrading: Stick to the trading plan and avoid impulsive decisions driven by market noise.
- Stay Informed: Monitor global and domestic news, such as US tariff developments or RBI policy updates, to anticipate market moves.
Previous Analysis Accuracy
Option Matrix India has a proven track record of delivering accurate technical analyses. Our previous market predictions have consistently aligned with actual price movements, enabling traders to capitalize on opportunities and manage risks effectively. We remain committed to providing high-quality insights to our readers.
Conclusion
For trading on August 11, 2025, traders should focus on the no-trading zone for NIFTY 50 between 24,338 and 24,480. Breakouts above 24,480 or breakdowns below 24,338 on a 15-minute candle close will dictate the next move. Similar setups apply to Bank Nifty and SENSEX, with key levels to watch. Global market trends, particularly the US rebound, may support a positive opening, but tariff concerns warrant caution. By combining technical analysis with disciplined risk management, traders can navigate the Indian stock market with confidence.
Disclaimer
This article is for informational purposes only and does not constitute investment advice. Trading in the Indian stock market involves risks, and individuals should conduct their own research or consult a financial advisor before making investment decisions.
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