Technical Analysis for 4th Aug 2025

Technical Analysis for 4th Aug 25

Welcome to our concise Technical Analysis for August 4, 2025, from Option Matrix India. This report summarizes the Indian Stock Market's performance on August 1, 2025, and provides insights for August 4, 2025, including key levels and predictions for Nifty, Bank Nifty, and Sensex, based on price action and global cues..

Price Movement Recap

On August 1, 2025, the Indian Stock Market faced a downturn, driven by various global and local influences. Here’s a brief overview of the market performance and external factors..

Indian Market Performance

The Indian Stock Market indices showed significant selling pressure, forming bearish patterns. Here are the details:

• NIFTY 50:
  • Open: 24,734.90
  • High: 24,784.15
  • Low: 24,535.05
  • Close: 24,559.00
  • Pattern: Formed a bearish engulfing candle, indicating rejection from higher levels and seller dominance (NSE India).
• Bank Nifty:
  • Open: 55,897.15
  • High: 56,096.55
  • Low: 55,694.10
  • Close: 55,704.15
  • Previous Close: 55,961.95
  • Pattern: Also formed a bearish candle, suggesting resistance around 56,100 (NSE India).
• Sensex:
  • Open: 81,074.41
  • High: 81,314.90
  • Low: 80,740.81
  • Close: 80,790.11
  • Pattern: Exhibited weakness at higher levels, closing lower (BSE India).

Our previous Technical Analysis accurately predicted the resistance levels, with the market trading within the expected zones. Check For more details.

Key Observations of Market Closing

The market’s closing on August 1, 2025, provided critical insights into its current state:

• Percentage Declines: NIFTY 50 closed down 0.85%, Bank Nifty by 0.46%, and Sensex by 0.49%, reflecting broad-based selling pressure.
• Narrowing Range: The market showed a contracting trading range, often a precursor to a significant breakout or breakdown.
• Bearish Close: Despite a gap-up opening, the indices closed bearishly, indicating weakness and seller dominance at higher levels.

These observations underscore the importance of Technical Analysis in identifying potential market movements.

Support and Resistance Levels

Technical Analysis relies heavily on identifying key support and resistance levels to guide trading decisions. Below are the critical levels for August 4, 2025:

Index	Support Levels	Resistance Levels
NIFTY 50	24,535 / 24,470 / 24,372 / 24,285	24,732 / 24,847 / 24,950 / 25,105
Bank Nifty	55,694 / 55,560 / 55,100	56,096 / 56,400 / 56,800
Sensex	80,700	81,150

These levels are crucial for traders to monitor, as they indicate potential areas where the market may reverse or continue its trend.

Nifty Predictions

On August 1, 2025, NIFTY 50 opened at 24,734.90, reached a high of 24,784.15, but faced significant selling pressure, dropping to a low of 24,535.05 and closing at 24,559.00. The bearish engulfing candle suggests a rejection from higher levels, a key signal in Technical Analysis.

Trade Plan for August 4, 2025

Based on our Technical Analysis, here is the trade plan for NIFTY:

• No Trading Zone: Between 24,535 and 24,732.
• Bullish Scenario:
  • If the 15-minute candle closes above 24,732, target:
    • 1st: 24,847
    • 2nd: 24,950
    • 3rd: 25,105
• Shorting Opportunity:
  • If the 15-minute candle crosses above 24,732 but closes below it, consider shorting with targets:
    • 1st: 24,650
    • 2nd: 24,570
• Bearish Scenario:
  • If the 15-minute candle closes below 24,535, target:
    • 1st: 24,470
    • 2nd: 24,372
    • 3rd: 24,285
• Reversal Scenario:
  • If the 15-minute candle crosses above 24,535 but closes above it, target:
    • 1st: 24,645
    • 2nd: 24,690

Important Note: Avoid bullish trades in a bearish candle and bearish trades in a bullish candle to align with the principles of Technical Analysis.

Bank Nifty Predictions

Bank Nifty opened at 55,897.15, reached a high of 56,096.55, dropped to a low of 55,694.10, and closed at 55,704.15, forming a bearish candle. This indicates resistance around the 56,100 level, a critical observation in our Technical Analysis.

Outlook for August 4, 2025

• Bullish Case: If Bank Nifty sustains above 56,096, it may target resistance levels at 56,400 and 56,800.
• Bearish Case: A break below 55,694 could lead to support levels at 55,560 and 55,100.

Traders should closely monitor price action around these levels, as they are pivotal in determining the next directional move in the Indian Stock Market.

Sensex Predictions

The Sensex opened at 81,074.41, hit a high of 81,314.90, fell to a low of 80,740.81, and closed at 80,790.11. The index showed weakness at higher levels, forming a bearish pattern near key resistance zones, consistent with our Technical Analysis.

Outlook for August 4, 2025

• Key Levels: Watch for a breakdown below 80,700, which could signal further downside, or a breakout above 81,150, indicating potential bullish momentum.
• Trading Strategy: Traders should use these levels to plan entries and exits, ensuring alignment with the market’s technical signals.

Monday’s Market Prediction

Our Technical Analysis for August 4, 2025, considers both global and domestic triggers:

• Bearish Dow Futures: Suggest potential negative sentiment in the US, which could spill over to the Indian Stock Market.
• Resistance Rejection: Indian indices have consistently faced rejection at higher levels, as evidenced by bearish engulfing patterns.
• Strong Volumes: Indicate active institutional participation, suggesting significant market moves are possible.

Probable Market Mood: The Indian Stock Market is likely to remain cautious to bearish unless global markets show signs of recovery. Traders should stay vigilant and rely on Technical Analysis to navigate this environment.

Global Cues

• Crude Oil Prices: Declined slightly from $69.26 to $68.91 per barrel, reflecting a cautious energy market .
• Indian Rupee: Weakened marginally against the USD, moving from 87.496 to 87.535, indicating minor currency pressure.
• European Markets: Closed bullish, suggesting positive sentiment in Europe.
• Dow Futures: Turned bearish, signaling potential caution in the US markets, which could influence global sentiment.

Final Verdict

The Indian Stock Market is at a critical juncture. Our Technical Analysis for August 4, 2025, highlights repeated rejections at higher levels, suggesting a potential downward continuation unless NIFTY sustains above 24,732. Traders must strictly adhere to the technical levels provided and avoid trading against the candle direction. This Technical Analysis meticulously outlines risk and reward zones, empowering traders to make informed decisions in the Indian Stock Market.

Disclaimer

This article is for educational use only and is not financial advice. Stock market trading involves risks, so individuals should do their own research or consult a financial advisor before investing.

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