The market exhibited a cautious and bearish sentiment on Wednesday. The Nifty 50 and Sensex both opened slightly lower and remained volatile throughout the day, eventually closing in the red. Technical indicators pointed to underlying weakness, with the index trading below key short- and medium-term moving averages, while the RSI suggested the market was not in overbought territory, leaving room for further downside.
Sectorally, the overall mood was negative, with most indices ending in the red. However, banking stocks stood out as a bright spot, with both public sector banks and the broader banking index showing resilience and closing higher, supported by gains in key banking stocks. In contrast, the pharmaceutical and healthcare sectors weighed heavily on the market, underperforming due to significant declines in major stocks, indicating sector-specific concerns or profit-booking.
Despite the domestic weakness, broader Asian markets maintained a positive tone, showing strength across key indices. US futures also reflected optimism, hinting at a potentially positive global sentiment, though this failed to lift the Indian indices significantly.
In this overview, we will analyse the key technical levels and trend directions for Nifty and BSE Sensex to monitor in the upcoming trading sessions. All the charts mentioned below are based on the 5-minute timeframe.
Nifty 50
(In this analysis, we have used 20/50/100/200 EMAs, where 20 EMA (Red), 50 EMA (Orange), 100 EMA (Light Blue), and 200 EMA (Dark Blue)).
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The Nifty 50 Index opened on a flat note at 24,641.35 on Wednesday, down by -8.2 points from Tuesday’s closing of 24,649.55. In the morning session, the Nifty Index started in a bearish trend. The index was volatile and made its day’s high at 24,671.40; later in the morning session, the index lost its momentum and dragged down to the 24,600 level but it was trading below its opening level. The Index was trading in the range of 24,650 to 24,500 in the morning session. It was trading below all four EMAs of 20/50/100/200 in the 15-minute time frame.
In the afternoon session, the Nifty Index was volatile and sustained above the 24,550 level and made the day’s low at 24,539.20 and closed near 24,574.20 in red. During the afternoon session, it closed below all four EMAs of 20/50/100/200 in the 15-minute time frame. Nifty’s immediate resistance levels are R1 (24,671), R2 (24,783), and R3 (24,902), while immediate support levels are S1 (24,547), S2 (24,401), and S3 (24,230).
The Nifty index had reached a day’s high at 24,671.40, closed in red below the 24,600 level, and saw a day’s low at 24,539.20. Finally, it had closed below its opening level at 24,574.20, losing -75.35 points, or 0.31%. The Relative Strength Index (RSI) stood at 38.16 (below the overbought zone of 70 but nearing the oversold zone in the daily time frame), and the Nifty 50 closed above the 200 EMAs and remained below the 20/50/100 EMA in the daily time frame.
Bank Nifty
(In this analysis, we have used 20/50/100/200 EMAs, where 20 EMA (Red), 50 EMA (Orange), 100 EMA (Light Blue), and 200 EMA (Dark Blue)).
The Bank Nifty Index started the session on a negative note at 55,329.80 on Wednesday, down by -30.45 points from Tuesday’s closing of 55,360.25. In the morning session, the index started the session on a bullish trend and was more volatile. In the morning session, the index made its day low at 55,227.70 and traded above its opening level at 55,396. In the morning session, the index was traded between the range of 55,500 to 55,200 levels and was below the 50/100/200 and above the 20 EMAs in the 15-minute time frame.
In the afternoon session, the Bank Nifty index rebounded and made its day high at 55,559.40 and closed at 55,411.15 in the green. During the afternoon session, it closed below the EMAs of 50/100/200 but remained above only the 20 EMAs in a 15-minute time frame. Bank Nifty immediate resistance levels are R1 (55,546), R2 (55,900), and R3 (56,317), while immediate support levels are S1 (55,216), S2 (54,766), and S3 (54,226).
The Bank Nifty index had peaked at 55,559.40 and made a day’s low at 55,227.70. Finally, it had closed in green at 55,411.15, breaking above the 55,400 level, gaining +50.90 points or 0.09%. The Relative Strength Index (RSI) stood at 36.68 (below the overbought zone of 70 but nearing the oversold zone in the daily time frame), and Bank Nifty was above the 100/200 EMAs but remained below the 20/50-day EMA in the daily time frame.
Sensex
(In this analysis, we have used 20/50/100/200 EMAs, where 20 EMA (Red), 50 EMA (Orange), 100 EMA (Light Blue), and 200 EMA (Dark Blue)).
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The BSE Sensex Index opened on a negative note at 80,694.98 on Wednesday, down by -15.27 points from Tuesday’s closing of 80,710.25. The Index was more volatile in the morning session after a negative start but made the day’s high at 80,834.43. It was trading at 80,640 below its opening level in the morning session. In the morning session, the index was trading in the range of 80,800 to 80,450 levels and was trading below the EMAs of the 50/100/200 but remained below the 20 EMA in the 15-minute time frame.
In the afternoon session, the Sensex Index was volatile and fluctuating between 80,700 and 80,450 levels and closed at 80,543.99. During the afternoon session, it traded below all four EMAs of 20/50/100/200 in the 15-minute time frame. BSE Sensex immediate resistance levels are R1 (80,833), R2 (81,311), and R3 (81,614), while immediate support levels are S1 (80,463), S2 (80,015), and S3 (79,351).
The BSE Sensex index had peaked at 80,834.43 and made a day’s low at 80,448.82. Finally, it had closed at 80,543.99, down by -166.26 points, or 0.21%. The Relative Strength Index (RSI) stood at 37.74 (below the overbought zone of 70 but nearing the oversold zone in the daily time frame), and the BSE Sensex was above the 200 EMAs but remained below the 20/50/100 EMA in the daily time frame.
India VIX
The India VIX increased by +0.25 points, or 2.11%, from 11.71 to 11.96 during Wednesday’s session. An increase in the India VIX indicates greater stock price volatility and increased market risk or uncertainty.
Market Recap on the 6th of August 2025
The Nifty 50 index opened at 24,641 on Wednesday, down by 8.55 points from Tuesday’s closing of 24,649.55. The index was volatile throughout the day and ended the day down at 24,574.2, down 75.35 points or 0.31%. During the daily time period, it traded below the 20/50/100 EMAs but above the 200 EMA. Its RSI was 38.16, considerably below the 70-point overbought zone. Similar to this, the BSE Sensex opened at 80,694.9, down 15.1 points from the previous close of 80,710 levels. The Sensex ended the day at 80,543.9, down -166.26 points, or -0.21%.
With the exception of the Nifty PSU Bank index and the Bank Nifty index, most sectoral indexes closed Wednesday in the negative. At 6,889.05 at the end of the day, the Nifty PSU Bank Index was up 40.40 points, or 0.59%. The index surged on Wednesday, which contributed to gains in major equities, including Union Bank of India (up 2.38%), Canara Bank Ltd (up 1.22%), and Bank of India (up 0.89%). At 55,411, the Bank Nifty finished the day up by 50.90 points, or 0.09%. The index rose as a result of the gains made by banking equities, such as Canara Bank, Federal Bank, State Bank of India, and Bank of Baroda.
The Nifty Pharma Index, which closed at 21,523.75, down -446.40 points, or -2%, was the main laggard. Divi’s Laboratories, Ajanta Pharma, Biocon, and Zydus Lifescience were among the stocks that caused the index to fall, causing it to drop by around -4%. Another top loser was the Nifty Healthcare Index, which ended the day at 14,223.35, down -258.20 points, or -1.8%. With a decline of over 4% on Wednesday, healthcare stocks such as Divi’s Laboratories, Syngene International, and Biocon dragged the index lower.
With Japan’s Nikkei 225 Index rising 245.32 points, or 0.6%, to end at 40,794.86, Asian markets were majorly positive. Similarly, the Shanghai Composite Index gained 16.4 points, or 0.45%, to settle at 3,633.99. The KOSPI Index for South Korea was up 0.14 points at 3,198.14. The Hang Seng Index of Hong Kong closed at 24,910.63, up 8.1 points, or 0.03%. The Shenzhen component index closed at 11,177.78, up 70.82 points, or 0.64%. At 4:28 p.m. IST, the US Dow Jones Futures were up 113 points, or 0.26%, at 44,349.
Trade Setup Summary
The Nifty 50 opened on a flat note at 24,641.35 on Wednesday, was volatile throughout the session, and closed below the 24,600 level at 24,574.20 in red. A break below 24,547 could trigger further selling towards 24,401, while a break above 24,671 could trigger bullishness towards 24,783.
Bank Nifty started the session on a negative note at 55,329.80. The index ended at 55,411.15, above the 55,400 level in green. A break below 55,216, could trigger further selling towards 54,766, while a break above 55,546 could trigger bullishness towards 55,900.
Sensex opened on a negative note at 80,694.98 on Wednesday and ended in red at 80,543.99, breaking below the 80,600 level. A break below 80,463 could trigger further selling towards 80,015, while breaking the next resistance level of 80,833 could lead towards the 81,311 level.
Given the ongoing volatility and mixed sentiments, it’s advisable to avoid aggressive positions and wait for clear directional moves above resistance or below support. Traders should consider these key support and resistance levels when entering long or short positions following the price break from these critical levels. Additionally, traders can combine moving averages to identify more accurate entry and exit points.
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