Technical Analysis for 7th Aug 2025:
Nifty, Sensex, Bank Nifty Predictions
Welcome to Option Matrix India’s comprehensive technical analysis for the Indian stock market on August 7, 2025. This article provides detailed insights into the Nifty 50, Sensex, and Bank Nifty, focusing on key price levels, market trends, and trading strategies. Our goal is to equip traders and investors with actionable information to navigate the Indian stock market effectively. With a focus on market analysis for tomorrow, we analyze recent price movements, global cues, and technical indicators to offer reliable Nifty predictions, Bank Nifty predictions, and Sensex predictions.
Market Overview
On August 6, 2025, the Indian stock market closed on a bearish note, reflecting selling pressure in key indices. The Nifty 50 opened at 24,641.35, reached a high of 24,670.85, but succumbed to selling, closing near its low at 24,574.20, down 0.31% from the previous close of 24,649.55. The Sensex mirrored this trend, opening at 80,694.98, peaking at 80,831.69, and closing at 80,543.99, a 0.21% decline from 80,710.25. In contrast, the Bank Nifty showed resilience, opening at 55,329.80, dipping to 55,228.20, and closing slightly higher at 55,411.15, up 0.09% from 55,360.25.
Trading volumes were notably lower, with Nifty recording 175.37 million shares compared to an average of approximately 280 million shares over the previous four days. This lower volume suggests that the bearish move may lack strong conviction, but traders should remain cautious as the market approaches key levels.
Daily Candle Patterns
- Nifty 50: Formed a bearish candle with a small upper wick (from 24,641.35 to 24,670.85) and a longer lower wick (from 24,574.20 to 24,539.85), closing near the day’s low. This indicates that sellers dominated after an initial attempt to push prices higher, signaling potential continuation of bearish sentiment.
- Sensex: Similar to Nifty, the Sensex formed a bearish candle, opening higher but closing near the low, reflecting sustained selling pressure.
- Bank Nifty: Displayed a bullish candle, opening at 55,329.80 and closing at 55,411.15, above the open. This suggests buying interest at lower levels, indicating relative strength in the banking sector.
Previous Analysis Accuracy
Our previous technical analysis accurately pinpointed critical levels for the Nifty 50, identifying support at 24,535 and resistance at 24,670. On August 6, the Nifty tested the support level with a low of 24,539.85 and faced resistance at 24,670.85 before declining, validating our predictions. This accuracy underscores the reliability of our market analysis approach. For more details, visit our previous analysis on the Option Matrix India website (https://www.optionmatrixindia.com/previous-analysis).
Key Observations
Here are the key takeaways from the market’s performance on August 6, 2025:
- Nifty 50: Closed at 24,574.20, down 0.31%, forming a bearish candle, indicating selling pressure.
- Sensex: Closed at 80,543.99, down 0.21%, also bearish, aligning with the broader market trend.
- Bank Nifty: Closed at 55,411.15, up 0.09%, showing a bullish candle and relative strength.
- Trading Volume: Nifty’s volume of 175.37 million shares was lower than the recent average, suggesting a lack of strong selling conviction.
- Global Cues:
- Crude Oil Prices: Increased from $65.16 to $66.17 per barrel, potentially pressuring the Indian market due to higher import costs.
- Rupee: Appreciated slightly from 87.802 to 87.697 against the dollar, a positive factor for import-dependent sectors.
- Global Markets: European markets were flat to bullish, and Dow futures indicated a flat to bullish sentiment, suggesting mixed but cautiously optimistic global cues.
Last 5 Days’ Performance
The following tables summarize the performance of Nifty 50, Sensex, and Bank Nifty over the last five trading days, providing context for current trends:
🔵 Nifty 50 Performance
-
August 6, 2025
Closed at 24,574.20 | Opened at 24,641.35
Day's Range: 24,539.85 – 24,670.85
Volume: 175.37M | Change: -0.31% -
August 5, 2025
Closed at 24,649.55 | Opened at 24,720.25
Day's Range: 24,592.75 – 24,720.25
Volume: 251.85M | Change: -0.30% -
August 4, 2025
Closed at 24,722.75 | Opened at 24,596.05
Day's Range: 24,554.00 – 24,736.25
Volume: 259.33M | Change: +0.64% -
August 1, 2025
Closed at 24,565.35 | Opened at 24,734.90
Day's Range: 24,535.05 – 24,784.15
Volume: 263.36M | Change: -0.82% -
July 31, 2025
Closed at 24,768.35 | Opened at 24,642.25
Day's Range: 24,635.00 – 24,956.50
Volume: 346.30M | Change: -0.35%
🔴 Sensex Performance
-
August 6, 2025
Closed at 80,543.99 | Opened at 80,694.98
Day's Range: 80,451.85 – 80,831.69
Volume: 4.64M | Change: -0.21% -
August 5, 2025
Closed at 80,710.25 | Opened at 80,946.43
Day's Range: 80,555.74 – 81,006.96
Volume: 10.92M | Change: -0.38% -
August 4, 2025
Closed at 81,018.72 | Opened at 80,765.83
Day's Range: 80,500.51 – 81,093.19
Volume: 9.86M | Change: +0.52% -
August 1, 2025
Closed at 80,599.91 | Opened at 81,074.41
Day's Range: 80,495.57 – 81,317.51
Volume: 14.68M | Change: -0.72% -
July 31, 2025
Closed at 81,185.58 | Opened at 80,695.50
Day's Range: 80,695.15 – 81,803.27
Volume: 9.71M | Change: -0.36%
🟢 Bank Nifty Performance
-
August 6, 2025
Closed at 55,411.15 | Opened at 55,329.80
Day's Range: 55,228.20 – 55,557.15
Volume: 117.57M | Change: +0.09% -
August 5, 2025
Closed at 55,360.25 | Opened at 55,545.05
Day's Range: 55,205.20 – 55,642.75
Volume: 105.72M | Change: -0.47% -
August 4, 2025
Closed at 55,619.35 | Opened at 55,557.50
Day's Range: 55,437.30 – 55,752.45
Volume: 131.11M | Change: 0.00% -
August 1, 2025
Closed at 55,617.60 | Opened at 55,897.15
Day's Range: 55,562.10 – 56,097.60
Volume: 98.89M | Change: -0.62% -
July 31, 2025
Closed at 55,961.95 | Opened at 55,728.15
Day's Range: 55,547.35 – 56,406.20
Volume: 182.79M | Change: -0.34%
The data indicates a mixed trend, with Nifty and Sensex showing a slight downward bias over the last five days, while Bank Nifty has remained relatively stable, with smaller fluctuations.
Support and Resistance Levels
Using pivot point calculations and recent price action, we have identified key levels for August 7, 2025. Pivot points are calculated as follows:
- Pivot Point (PP) = (High + Low + Close) / 3
- Support 1 (S1) = (2 * PP) - High
- Support 2 (S2) = PP - (High - Low)
- Resistance 1 (R1) = (2 * PP) - Low
- Resistance 2 (R2) = PP + (High - Low)
Nifty 50
- Pivot Point: 24,594.97
- Support 1: 24,519.09
- Support 2: 24,463.97
- Resistance 1: 24,650.09
- Resistance 2: 24,725.97
- Additional Levels:
- Key Support: 24,535 (recent low, tested on August 1 and 6)
- Key Resistance: 24,670 (today’s high, aligns with recent resistance)
Sensex
- Pivot Point: 80,609.18
- Support 1: 80,386.67
- Support 2: 80,229.34
- Resistance 1: 80,766.51
- Resistance 2: 80,989.02
Bank Nifty
- Pivot Point: 55,398.83
- Support 1: 55,240.51
- Support 2: 55,069.88
- Resistance 1: 55,569.46
- Resistance 2: 55,727.78
These levels serve as critical markers for traders to monitor potential price reversals or continuations.
Nifty Predictions
Our Nifty predictions for August 7, 2025, are based on a breakout strategy:
- No-Trading Zone: 24,535 to 24,670. This range represents the day’s trading range on August 6, and prices within this zone may indicate consolidation.
- Bullish Scenario: If a 15-minute candle closes above 24,670, traders can target:
- 1st Target: 24,732
- 2nd Target: 24,800
- 3rd Target: 24,890
- Bearish Scenario: If a 15-minute candle closes below 24,535, downside targets include:
- 1st Target: 24,470
- 2nd Target: 24,372
- 3rd Target: 24,285
- False Breakouts:
- If Nifty crosses 24,670 but closes below it on a 15-minute candle, short-term downside targets are 24,590 and 24,540.
- If Nifty crosses below 24,535 but closes above it, upside targets are 24,590 and 24,630.
- Trading Rule: Avoid bullish trades in bearish candles and bearish trades in bullish candles to reduce risk.
Traders should also monitor the pivot point at 24,594.97. A sustained move above this level could test resistance at 24,650.09 and 24,725.97, while a drop below may target supports at 24,519.09 and 24,463.97.
Bank Nifty Predictions
For Bank Nifty predictions, we apply a similar breakout strategy based on August 6’s range of 55,228.20 to 55,557.15:
- No-Trading Zone: 55,228 to 55,557.
- Bullish Scenario: A 15-minute candle close above 55,557 could target:
- 1st Target: 55,569.46 (R1)
- 2nd Target: 55,727.78 (R2)
- 3rd Target: 55,900 (based on recent highs)
- Bearish Scenario: A close below 55,228 may lead to:
- 1st Target: 55,240.51 (S1)
- 2nd Target: 55,069.88 (S2)
- 3rd Target: 55,000 (psychological level)
Bank Nifty’s bullish candle on August 6 suggests strength in the banking sector, which could support the broader market if sustained. Traders should watch for confirmation of a breakout above 55,557 or a breakdown below 55,228.
Sensex Predictions
For Sensex predictions, key levels to watch include:
- Pivot Point: 80,609.18
- Bullish Scenario: A move above 80,609.18 could test resistance at 80,766.51 and 80,989.02.
- Bearish Scenario: A drop below 80,609.18 may target supports at 80,386.67 and 80,229.34.
Given the bearish close on August 6, traders should be cautious of further downside unless a reversal pattern emerges.
Tomorrow’s Market Prediction
Based on the market analysis for tomorrow, we expect the Indian stock market to open flat to slightly negative on August 7, 2025. The bearish closes in Nifty and Sensex suggest potential downside pressure, but Bank Nifty’s strength could provide some stabilization. Global cues are mixed:
- Crude Oil: The rise to $66.17 per barrel may increase import costs, negatively impacting market sentiment.
- Rupee: Appreciation to 87.697 is a positive factor, potentially offsetting some inflationary pressures.
- Global Markets: Flat to bullish signals from European markets and Dow futures indicate cautious optimism.
Traders should monitor key levels and watch for any unexpected news or economic data releases that could influence market sentiment. The absence of major scheduled events suggests that technical levels will play a significant role in price action.
Understanding Technical Analysis
Pivot Points
Pivot points are a cornerstone of technical analysis, helping traders identify potential support and resistance levels. They are calculated using the previous day’s high, low, and close prices:
- Pivot Point (PP) = (High + Low + Close) / 3
- Support and Resistance Levels: Derived from the pivot point to identify potential turning points.
These levels are particularly useful in volatile markets like the Indian stock market, providing clear markers for entry and exit points.
Candle Patterns
Candlestick patterns offer insights into market sentiment. The bearish candle in Nifty and Sensex on August 6 indicates seller dominance, while Bank Nifty’s bullish candle suggests buying interest at lower levels. Traders use these patterns to anticipate reversals or continuations, making them essential for market predictions.
Risk Management
Effective risk management is crucial for successful trading. Key strategies include:
- Stop-Loss Orders: Set stop-losses below support levels for long positions (e.g., below 24,535 for Nifty) or above resistance levels for short positions (e.g., above 24,670).
- Position Sizing: Adjust position sizes based on risk tolerance to limit potential losses.
- Avoid Counter-Trend Trades: As per our strategy, avoid bullish trades in bearish candles and vice versa to align with market momentum.
By implementing these strategies, traders can protect their capital and enhance long-term profitability.
Global Market Influences
Global factors play a significant role in shaping the Indian stock market:
- Crude Oil Prices: The increase to $66.17 per barrel could pressure sectors reliant on energy imports, such as oil and gas.
- Rupee Strength: The rupee’s appreciation to 87.697 against the dollar is positive, potentially benefiting import-heavy industries.
- Global Sentiment: Flat to bullish signals from European markets and Dow futures suggest a cautiously optimistic backdrop, which could support the Indian market if positive momentum continues.
The outperformance of Bank Nifty indicates strength in the banking sector, a critical component of the Indian economy. If banking stocks maintain their resilience, they could help stabilize the broader market.
Final Verdict
Our technical analysis for 7th August 2025 suggests a cautious outlook for the Indian stock market. The bearish closes in Nifty 50 and Sensex indicate potential downside risks, particularly if key support levels are breached. However, Bank Nifty’s strength offers hope for stabilization. Traders should focus on the identified support and resistance levels, adhere to the breakout strategy, and implement robust risk management. By staying vigilant and monitoring global cues, traders can navigate the market effectively.
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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