The Sensex shed 586 points, or 0.72%, to close at 80,599.91, while the Nifty 50 declined 203 points, or 0.82%, to settle at 24,565.35.
Losses were steeper in the broader market. The BSE Midcap index fell 1.37%, and the Smallcap index declined 1.59%.
Two stock recommendations by MarketSmith India for 4 August:
Buy: Eicher Motors Ltd (current price: ₹5,528)
- Why it’s recommended: Robust premium motorcycle demand, outstanding export performance, diversified commercial vehicle joint venture, strategic EV roadmap, and capacity expansion
- Key metrics: P/E: 36.09, 52-week high: ₹ 5,906.50, volume: ₹785.36 crore
- Technical analysis: Reclaimed its 100-DMA on above average volume
- Technical analysis: Reclaimed its 100-DMA on above average volume
- Risk factors: Rising competitive intensity in >250 cc segment, concentrated ownership and governance influence, macro-economics, and export headwinds.
- Buy at: ₹ 5,470–5,600
- Target price: ₹ 6,120 in two to three months
- Stop loss: ₹ 5,250
Buy: TVS Motor Company Ltd (current price: ₹2,858)
- Why it’s recommended: Strong product portfolio and brand equity, electric vehicle expansion, robust export growth
- Key metrics: P/E: 51.31; 52-week high: ₹2,960; volume: ₹ 646.46 crore
- Technical analysis: Downward sloping trendline breakout
- Risk factors: Input cost inflation, EV transition risks, high competitive intensity
- Buy at: ₹2,830–2,870
- Target price: ₹3,100 in two to three months
- Stop loss: ₹ 2,740
Nifty 50 falls for second session, bearish momentum deepens
The Nifty 50 began the session on a weak note and came under steady selling pressure throughout Friday, 1 August, closing below the 24,600 mark. The benchmark index dropped 203 points, or 0.82%, to end at 24,565.35, extending its decline for a second straight session amid broad-based weakness.
On the daily chart, Nifty formed a bearish candle with a lower-high, lower-low structure, reinforcing near-term negative momentum. The weekly chart added to the caution, marking a fifth consecutive bearish candle—an indication of sustained selling pressure.
Only the Nifty FMCG index managed to buck the trend, ending 0.69% higher. Nifty Pharma (-3.33%), Nifty Health Care (-2.77%), and Nifty Metal (-1.97%) led the sectoral losses. The overall market breadth remained weak, with an advance-decline ratio of 1:3, reflecting broad pessimism across the board.
Technically, Nifty continues to trade below its 50-day moving average and is now inching toward the 100-DMA at 24,388—a critical level that may act as near-term support. The RSI has slipped to 36 and is trending downward, while the MACD remains in a negative crossover below both its signal and central lines. These indicators collectively suggest a cautious short-term outlook.
Under the O’Neil methodology of market direction, the market’s status has been downgraded to an “Uptrend Under Pressure” as Nifty broke below its 50-DMA and the distribution day count rose to seven.
Going forward, the index is approaching a key support zone between 24,480 and 24,400. A sustained hold above this band could attract buying interest. However, a breakdown below this zone could open the door to further downside toward 24,200.
On the upside, for any meaningful recovery to take shape, Nifty must decisively reclaim 24,900—a short-term ceiling—and then clear 25,300 to signal a reversal in trend. Until then, traders are advised to remain cautious and closely monitor price action near these critical levels.
Bank Nifty Performance | 1 August
Bank Nifty extended its losing streak for a third straight session on Friday, 1 August, as persistent selling pressure weighed on the banking index. The index opened lower at 55,897.15, touched an intraday high of 56,096.55 and a low of 55,564.30, before closing at 55,617.60, down for the day and forming another bearish candle on the daily chart.
The sustained decline reflects weak sentiment among market participants, with limited buying interest even on intraday pullbacks. On the weekly chart, the index also formed a bearish candle, underlining broader market weakness in the banking space.
Technical indicators remain unfavourable. The Relative Strength Index (RSI) continues to trend lower and currently hovers around 39, suggesting declining momentum. Meanwhile, the Moving Average Convergence Divergence (MACD) has formed a negative crossover, reinforcing the bearish outlook.
Despite these signals, Bank Nifty is still classified as being in an “Uptrend Under Pressure” under O’Neil’s methodology—indicating caution amid rising distribution days and potential institutional selling.
Looking ahead, 55,500 is emerging as a key support level. A decisive break below this could accelerate the downside. On the upside, resistance is expected near 56,500. A breakout above or a breach below this range will likely set the tone for the next directional move. Traders should closely watch these levels in the coming sessions for confirmation of trend reversal or continuation.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, developed by legendary investor William J. O’Neil. You can access a 10-day free trial by registering on its website.
Trade name: William O’Neil India Pvt. Ltd.
Sebi Registration No.: INH000015543
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
