Technical Analysis for 5th Aug 2025
The Indian stock market continues to captivate investors with its dynamic movements, driven by both domestic and global factors. On August 4, 2025, the market closed on a bullish note, with the Nifty 50 index forming an inside candle, signaling potential consolidation. This article provides a comprehensive technical analysis for 5th August 2025, focusing on the Nifty 50, Bank Nifty, and Sensex. We’ll explore key price movements, support and resistance levels, and actionable trading strategies to help you navigate tomorrow’s market. Our previous analyses have proven highly accurate, and you can review them here.
Today’s Price Movement
On August 4, 2025, the Indian stock market displayed a positive trend:
- Nifty 50: Closed at 24,722.75, up 0.61% from 24,565.35. It traded between 24,554 and 24,734.65, opening at 24,596.05. The day formed an inside candle, where the high and low were within the previous day’s range (high: 24,784.15, low: 24,535.05), indicating indecision and potential for a breakout.
- Bank Nifty: Closed nearly flat at 55,619.35, slightly up from 55,617.60. It ranged from 55,437.3 to 55,752.45, opening at 55,557.50, reflecting a lack of strong directional momentum.
- Sensex: Gained 0.51%, closing at 81,018.72 from 80,599.91. It moved between 80,504.62 and 81,091.35, opening at 80,765.83, aligning with the bullish sentiment.
Our prior analysis accurately forecasted these movements, reinforcing the reliability of our technical analysis approach. Global cues also influenced the market:
- Crude Oil: Prices dropped from $67.33 to $66.54, a positive for India as a net oil importer, potentially reducing inflation and boosting market sentiment.
- Rupee: Weakened slightly from 87.23 to 87.598 against the dollar, which may benefit exporters but increase import costs.
- Global Markets: Bullish European markets and Dow futures contributed to the positive mood in India.
Key Observations of Market Closing
- Nifty 50: The bullish close with an inside candle suggests consolidation. This pattern often precedes a significant move, as traders await a breakout above resistance or below support.
- Bank Nifty: The near-flat close indicates indecision in the banking sector, with no clear trend established.
- Sensex: The index’s gain aligns with the broader market’s bullish tone, supported by positive global cues.
- Global Influence: Lower oil prices reduce India’s import bill, while bullish international markets encourage foreign investment inflows.
The inside candle in Nifty is particularly noteworthy. It reflects a balance between buyers and sellers, often a precursor to volatility. Traders should prepare for potential breakouts on August 5, 2025.
Support and Resistance Levels
Based on recent price action and pivot point calculations, here are the key levels for August 5, 2025:
Nifty 50
- Pivot Point: 24,671.17 (calculated as (High: 24,734.25 + Low: 24,556.50 + Close: 24,722.75)/3)
- Resistance:
- R1: 24,786
- R2: 24,849
- User-specified: 24,732 (key breakout level)
- Support:
- S1: 24,608
- S2: 24,493
- User-specified: 24,535 (key breakdown level)
Bank Nifty
- Pivot Point: 55,603.88 (calculated as (High: 55,750.45 + Low: 55,441.85 + Close: 55,619.35)/3)
- Resistance:
- R1: 55,766
- R2: 55,912
- Support:
- S1: 55,457
- S2: 55,295
Sensex
- Pivot Point: 80,871.56 (calculated as (High: 81,091.35 + Low: 80,504.62 + Close: 81,018.72)/3)
- Resistance:
- R1: 81,239
- R2: 81,458
- Support:
- S1: 80,652
- S2: 80,285
Nifty Predictions
The Nifty 50 is in a no trading zone between 24,645 and 24,735, as per our analysis. Traders should avoid initiating positions within this range due to potential consolidation. Here are the scenarios for August 5, 2025:
- Bullish Breakout: A 15-minute candle closing above 24,735 could signal a bullish move, targeting:
- 1st Target: 24,847
- 2nd Target: 24,950
- 3rd Target: 25,105
- Bearish Breakout: A 15-minute candle closing below 24,640 may indicate a bearish trend, targeting:
- 1st Target: 24,535
- 2nd Target: 24,470
- 3rd Target: 24,372
- False Breakouts:
- If Nifty crosses 24,735 but closes below it, consider shorting with targets at 24,650 and 24,570.
- If Nifty crosses below 24,640 but closes above it, consider going long with targets at 24,732 and 24,790.
Important: Avoid bullish trades in bearish candles and bearish trades in bullish candles to minimize risk.
📊 NIFTY 50 – Last 5 Days Summary
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📅 Date: Aug 04, 2025
🔽 Open: 24,596.05
🔼 High: 24,734.25
🔽 Low: 24,556.50
✅ Close: 24,722.75
📈 Change: +0.61%
📊 Volume: 198.53M
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📅 Date: Aug 01, 2025
🔽 Open: 24,734.90
🔼 High: 24,784.15
🔽 Low: 24,535.05
❌ Close: 24,565.35
📉 Change: -0.82%
📊 Volume: 263.36M
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📅 Date: Jul 31, 2025
🔽 Open: 24,642.25
🔼 High: 24,956.50
🔽 Low: 24,635.00
❌ Close: 24,768.35
📉 Change: -0.35%
📊 Volume: 346.30M
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📅 Date: Jul 30, 2025
🔽 Open: 24,890.40
🔼 High: 24,902.30
🔽 Low: 24,771.95
✅ Close: 24,855.05
📈 Change: +0.14%
📊 Volume: 243.89M
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📅 Date: Jul 29, 2025
🔽 Open: 24,609.65
🔼 High: 24,847.15
🔽 Low: 24,598.60
✅ Close: 24,821.10
📈 Change: +0.57%
📊 Volume: 284.66M
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Bank Nifty Predictions
Bank Nifty’s flat close suggests caution. Key levels for August 5, 2025:
- Upside: If it sustains above the pivot of 55,604, it could test 55,766 and 55,912.
- Downside: A break below 55,604 may lead to supports at 55,457 and 55,295.
Given the lack of momentum, traders should wait for a clear breakout or breakdown before entering positions.
📊 BANK NIFTY – Last 5 Days Summary
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📅 Aug 04, 2025
🔽 Open: 55,557.50
🔼 High: 55,750.45
🔽 Low: 55,441.85
✅ Close: 55,619.35
📉 Change: -0.03%
📊 Volume: 109.49M
━━━━━━━━━━━━━━━━━━━━━━
📅 Aug 01, 2025
🔽 Open: 55,897.15
🔼 High: 56,097.60
🔽 Low: 55,562.10
❌ Close: 55,617.60
📉 Change: -0.62%
📊 Volume: 98.89M
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📅 Jul 31, 2025
🔽 Open: 55,728.15
🔼 High: 56,406.20
🔽 Low: 55,547.35
❌ Close: 55,961.95
📉 Change: -0.34%
📊 Volume: 182.79M
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📅 Jul 30, 2025
🔽 Open: 56,310.10
🔼 High: 56,321.15
🔽 Low: 56,064.55
❌ Close: 56,150.70
📉 Change: -0.13%
📊 Volume: 139.65M
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📅 Jul 29, 2025
🔽 Open: 55,881.80
🔼 High: 56,296.40
🔽 Low: 55,843.25
✅ Close: 56,222.00
📈 Change: +0.24%
📊 Volume: 145.11M
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Sensex Predictions
The Sensex is likely to follow Nifty’s lead. Key levels for August 5, 2025:
- Upside: Resistance at 81,239 and 81,458.
- Downside: Support at 80,652 and 80,285.
Traders should monitor these levels for potential trading opportunities.
📊 SENSEX – Last 5 Days Summary
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📅 Aug 04, 2025
🔽 Open: 80,765.83
🔼 High: 81,091.35
🔽 Low: 80,504.62
✅ Close: 81,018.72
📈 Change: +0.51%
📊 Volume: 9.03M
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📅 Aug 01, 2025
🔽 Open: 81,074.41
🔼 High: 81,317.51
🔽 Low: 80,495.57
❌ Close: 80,599.91
📉 Change: -0.72%
📊 Volume: 14.68M
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📅 Jul 31, 2025
🔽 Open: 80,695.50
🔼 High: 81,803.27
🔽 Low: 80,695.15
❌ Close: 81,185.58
📉 Change: -0.36%
📊 Volume: 9.71M
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📅 Jul 30, 2025
🔽 Open: 81,594.52
🔼 High: 81,618.96
🔽 Low: 81,187.06
✅ Close: 81,481.86
📈 Change: +0.18%
📊 Volume: 7.21M
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📅 Jul 29, 2025
🔽 Open: 80,620.25
🔼 High: 81,429.88
🔽 Low: 80,575.45
✅ Close: 81,337.95
📈 Change: +0.55%
📊 Volume: 12.29M
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Global Market Influences
Global factors play a significant role in shaping the Indian stock market:
- Crude Oil Prices: The drop from $67.33 to $66.54 reduces India’s import costs, potentially lowering inflation and supporting economic growth.
- Rupee Exchange Rate: The rupee’s slight depreciation to 87.598 may boost export-oriented sectors but could pressure companies reliant on imports.
- Global Markets: Bullish trends in European markets and Dow futures suggest positive global sentiment, likely encouraging foreign institutional investments.
These factors create a favorable backdrop but warrant caution due to potential volatility.
Trading Strategies for Tomorrow
Based on the technical analysis, here are strategies for August 5, 2025:
- Breakout Trading:
- Long: Enter if Nifty closes above 24,732 on a 15-minute chart, targeting 24,847, 24,950, and 25,105.
- Short: Enter if Nifty closes below 24,535, targeting 24,470, 24,372, and 24,285.
- Reversal Trading:
- If Nifty crosses 24,732 but closes below, short with targets at 24,650 and 24,570.
- If Nifty crosses below 24,535 but closes above, go long with targets at 24,645 and 24,690.
- Range Trading: Within 24,535–24,732, buy near support and sell near resistance, using tight stop-losses.
For Bank Nifty and Sensex, apply similar strategies at their respective pivot levels. Always use stop-loss orders and confirm breakouts with volume.
Tomorrow’s Market Prediction
The market analysis for tomorrow suggests a range-bound start, with potential for a breakout. The inside candle in Nifty indicates indecision, but positive global cues may tilt the bias slightly bullish. Traders should:
- Watch for a 15-minute candle close above 24,732 or below 24,535 for Nifty.
- Monitor Bank Nifty around 55,604 and Sensex around 80,872 for directional cues.
- Stay updated on global news, as unexpected events could trigger volatility.
Final Verdict
The Indian stock market is poised for a pivotal session on August 5, 2025. The Nifty’s consolidation phase, marked by the inside candle, suggests a breakout is imminent. Traders should focus on the key levels of 24,732 and 24,535 for Nifty, while monitoring Bank Nifty and Sensex for correlated moves. Positive global cues provide optimism, but caution is advised due to potential volatility. Combine this technical analysis with fundamental research and risk management for optimal trading decisions.
Disclaimer
Investments in the securities market are subject to market risks. Please read all related documents carefully before investing. The views expressed are those of Option Matrix India and do not constitute investment advice.
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