Indian Market Closes Strong Above 24,700

By Mandar in Indian Market Insights —

Indian Stock Market Overview - August 4, 2025

The Indian stock market concluded the day on a positive note on August 4, 2025. Both the Nifty 50 and the Sensex showed gains, reflecting a recovery from previous losses.

  • The Nifty 50 closed above 24,700.
  • The Sensex increased by 419 points to finish at 81,018.72, a gain of 0.52 percent.

The market's positive performance was underpinned by broad-based buying across different sectors, including midcap and smallcap stocks. This occurred despite facing several global challenges.

Market Drivers and Sentiment

The market's resilience was tested by weak global cues, which included:

  • Recent U.S. tariff hikes.
  • Disappointing July payroll data.

These factors induced investor caution worldwide. Despite these challenges, the Indian market showed strength, supported by sectors like auto and PSU banks. The India VIX, which measures market volatility, saw an increase of 3.75 percent, closing at 11.97. This indicates a degree of cautious trading among investors.

Technical Outlook

The technical perspective suggests key levels to monitor:

  • Support levels are around 24,535-24,500. A break below this could lead to further declines towards 24,300-24,250.
  • Resistance is near 24,700-24,800. Overcoming this level is essential for sustained upward movement.
  • The index remains below its 100-day EMA, suggesting continuous consolidation.

Sectoral Performance

Key sector movements included:

  • Pharma stocks experienced selling pressure but showed some stabilization.
  • FMCG stocks continued their defensive posture due to consistent demand.
  • Auto and PSU bank stocks were significant contributors to the day's gains.

Key Takeaways and Actions

  • The Nifty closed above 24,700, representing short-term bullishness.
  • The Sensex gained 419 points, boosted by the auto and PSU bank sectors.
  • Investors should watch for the Nifty's ability to hold above the 24,535 support level.
  • The 24,700-24,800 range is a critical resistance area for the continuation of any upward trend.
  • Market volatility remains contained but heightened, reflecting investor caution.

Investors should closely monitor the upcoming Reserve Bank of India (RBI) rate decision, the progress of global trade talks, and the performance of domestic sectors. These factors are crucial for anticipating the market's direction in the near term.