Technical Analysis for 6th Aug 2025:
Nifty, Bank Nifty, and Sensex Predictions
Welcome to Option Matrix India’s technical analysis for the Indian stock market on August 6, 2025. This summary reviews the price movements of Nifty 50, Bank Nifty, and Sensex from August 5, 2025, and offers predictions for the next trading day. We use market data and technical indicators to help traders make informed decisions. The chart above shows the closing prices of these indices over the past five days, highlighting key trends.
Today’s Price Movement
On August 5, 2025, the Indian stock market closed on a bearish note, reflecting selling pressure across major indices. Below is a detailed breakdown of the day’s performance:
- Nifty 50: Opened at 24,720.25, reached a high of 24,720.25, a low of 24,592.75, and closed at 24,649.55, down 0.30% from the previous close of 24,722.75.
- Bank Nifty: Opened at 55,545.05, hit a high of 55,642.75, a low of 55,205.20, and closed at 55,360.25, down 0.47% from 55,619.35.
- Sensex: Opened at 80,946.43, reached a high of 81,006.96, a low of 80,555.74, and closed at 80,710.25, down 0.38% from 81,018.72.
The bearish close was accompanied by lower trading volumes compared to the previous day, suggesting that the selling pressure may not have been aggressive. For instance, Nifty’s volume was 186.14 million shares, down from 259.33 million on August 4, indicating possible indecision among market participants.
Global Cues Impacting the Market
Several global factors influenced the market’s performance on August 5, 2025:
- Crude Oil Prices: Declined from $66.29 to $65.66 per barrel. Lower oil prices are generally positive for India, as they reduce import costs and ease inflationary pressures.
- Indian Rupee: Depreciated slightly from 87.67 to 87.813 against the US Dollar, potentially impacting sectors reliant on imports or exports.
- International Markets: European markets showed a flat to bullish trend, and Dow futures indicated a similar sentiment, suggesting potential support for global equity markets.
These mixed signals contributed to the cautious sentiment observed in the Indian market, with domestic technical levels playing a significant role in the day’s outcome.
Key Observations of Market Closing
Nifty 50
- Open: 24,720.25
- High: 24,733.10
- Low: 24,592.75
- Close: 24,649.55
- Daily Candle: Bearish inside bar (narrow range)
Bank Nifty
- Open: 55,545.05
- High: 55,648.15
- Low: 55,205.20
- Close: 55,360.25
- Daily Candle: Bearish candle with upper wick showing rejection at higher levels
Sensex
- Open: 80,946.43
- High: 81,010.49
- Low: 80,555.74
- Close: 80,710.25
- Daily Candle: Bearish closing; formed a shooting star-type rejection pattern
Key observations include:
- All three indices formed bearish candlestick patterns, with the open near or at the high and the close below the open, indicating selling pressure from the start of the session.
- Lower trading volumes compared to August 4 (Nifty: 259.33M, Bank Nifty: 131.11M, Sensex: 9.86M) suggest that the bearish move may lack strong conviction, potentially setting the stage for consolidation or a reversal.
Candlestick Pattern Analysis
The daily candlestick patterns for August 5, 2025, provide critical insights into market sentiment:
- Nifty 50: The candle had an open equal to the high (24,720.25) and closed at 24,649.55, forming a bearish candle with no upper wick. This pattern, often resembling a bearish marubozu, suggests strong selling pressure throughout the session.
- Bank Nifty: Similarly, the open (55,545.05) was close to the high (55,642.75), with a close at 55,360.25, reinforcing bearish sentiment.
- Sensex: The open (80,946.43) was near the high (81,006.96), closing at 80,710.25, indicating consistent selling pressure.
These patterns suggest caution for traders, as the market may continue to face downward pressure unless a reversal signal emerges.
Support and Resistance Levels
Identifying key support and resistance levels is essential for predicting potential price movements. Below are the critical levels for each index:
Nifty 50
Level Type | Price |
|---|---|
Support 1 | 24,590 |
Support 2 | 24,535 |
Support 3 | 24,460 |
Resistance 1 | 24,670 |
Resistance 2 | 24,732 |
Resistance 3 | 24,800 |
Bank Nifty
Level Type | Price |
|---|---|
Support 1 | 55,205.20 |
Support 2 | 55,000 |
Support 3 | 54,500 |
Resistance 1 | 55,545.05 |
Resistance 2 | 55,642.75 |
Resistance 3 | 56,000 |
Sensex
Level Type | Price |
|---|---|
Support 1 | 80,555.74 |
Support 2 | 80,000 |
Support 3 | 79,500 |
Resistance 1 | 80,946.43 |
Resistance 2 | 81,006.96 |
Resistance 3 | 81,500 |
These levels serve as pivotal points for potential breakouts or breakdowns, guiding trading strategies for August 6, 2025.
Technical Indicators
While specific indicator values are not available, traders should consider the following standard technical indicators:
- Moving Averages: Monitor whether the indices are trading above or below key moving averages (e.g., 50-day or 200-day) to gauge the overall trend.
- Relative Strength Index (RSI): An RSI below 30 may indicate oversold conditions, while above 70 suggests overbought conditions.
- MACD: Look for bullish or bearish crossovers to confirm trend changes.
Traders can access real-time indicator data on platforms like TradingView or Investing.com.
Nifty Predictions
Our technical analysis identifies a no-trading zone for Nifty 50 between 24,590 and 24,670, where the market may exhibit choppy behavior. Here are the predictions for August 6, 2025:
- Bullish Scenario: If a 15-minute candle closes above 24,670, expect potential targets at 24,732, 24,800, and 24,890. This breakout would signal strong buying interest.
- Bearish Scenario: If a 15-minute candle closes below 24,590, targets on the downside include 24,535, 24,460, and 24,337, indicating continued selling pressure.
- Intraday Scenarios:
- If Nifty crosses 24,670 but closes below it in a 15-minute candle, short-side targets are 24,590 and 24,535.
- If Nifty dips below 24,590 but closes above it, upside targets are 24,660 and 24,730.
Important Note: Avoid bullish trades during bearish candles and bearish trades during bullish candles to minimize risks. Use stop-loss orders to protect against adverse movements.
Bank Nifty Predictions
For Bank Nifty, key levels to watch include:
- Support: 55,205.20
- Resistance: 55,642.75
A sustained move above 55,545.05 could push Bank Nifty towards 55,642.75 and potentially 56,000. Conversely, a break below 55,205.20 may lead to declines towards 55,000 and 54,500. Traders should monitor banking sector stocks for additional cues.
Sensex Predictions
For Sensex, critical levels are:
- Support: 80,555.74
- Resistance: 81,006.96
Holding above 80,946.43 could drive Sensex towards 81,006.96 and higher. Failing to maintain above 80,555.74 might result in a drop towards the psychological 80,000 level or lower.
Tomorrow’s Market Prediction
Given the global and domestic factors:
- Positive Factors: Lower crude oil prices and flat to bullish signals from European markets and Dow futures suggest potential support for the Indian market.
- Cautious Factors: The Rupee’s depreciation and today’s bearish close indicate a need for vigilance.
The market may open flat or with a slight gap up on August 6, 2025, but the intraday trend will depend on how the indices interact with their support and resistance levels. Traders should watch for early momentum and any breaking news that could influence sentiment.
Trading Strategies for 6th Aug
To navigate tomorrow’s market, consider the following strategies:
- Breakout Strategy:
- Long Trade: Enter if Nifty closes above 24,670 on a 15-minute candle, targeting 24,732, 24,800, and 24,890. Set a stop-loss below 24,670.
- Short Trade: Enter if Nifty closes below 24,590, targeting 24,535, 24,460, and 24,337. Set a stop-loss above 24,590.
- Range-Bound Strategy: If Nifty remains within 24,590–24,670, buy near support and sell near resistance.
- Trend Following: Align trades with the overall trend, using moving averages or trendlines for confirmation.
Risk Management:
- Always use stop-loss orders.
- Avoid over-leveraging positions.
- Stay informed about economic events or earnings reports that could cause volatility.
Volume Analysis
Volume trends provide insights into the strength of price movements. On August 5, 2025, volumes were lower than the previous day across all indices:
- Nifty 50: 186.14M vs. 259.33M on August 4.
- Bank Nifty: 100.51M vs. 131.11M.
- Sensex: 6.87M vs. 9.86M.
Lower volume on a down day suggests that the selling pressure may not be robust, potentially indicating a consolidation phase or a setup for a reversal if buying interest emerges.
Understanding the 15-Minute Candle Strategy
The 15-minute candle strategy is a popular approach among day traders, balancing short-term price movements with reduced noise. By waiting for a candle to close above or below key levels, traders can confirm breakouts or breakdowns, reducing the risk of false signals. For example, a close above 24,670 for Nifty confirms bullish momentum, while a close below 24,590 signals bearish momentum.
Final Verdict
The Indian stock market is at a pivotal point, with Nifty 50’s no-trading zone of 24,590–24,670 being a critical range to watch. A decisive breakout or breakdown will likely set the tone for August 6, 2025. Traders should use the 15-minute candle strategy, monitor global cues, and employ strict risk management to navigate potential volatility.
Stay tuned to Option Matrix India for real-time updates and expert market analysis.
Disclaimer
The information provided in this article is for educational purposes only and should not be considered financial advice. Trading in the stock market involves risks, and individuals should conduct their own research or consult a financial advisor before making investment decisions.
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