Bull vs Bear: The Contest has been interesting as ever, with bears pulling the markets down towards the last week.
When Indian share markets open tomorrow, August 5, a guarded but possibly positive start is anticipated, reflecting a mix of overseas leads, continuation of Q1 result announcements, and macroeconomic factors.
The GIFT Nifty, which followed US and Asian leads overnight, traded around 24,685–24,712 in late trade, implying a soft positive opening of around 20–30 points for the Nifty50. Technical experts point to major support for Nifty at 24,400–24,450 and resistance at 24,650–24,850 levels, and so those are the levels to watch out for early tomorrow. Market volatility, as represented by India VIX, is still high near 11.98, reflecting traders being a bit jittery in the face of continued global unrest.
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India's earnings season has reached its final leg. Though marquee names like Sona BLW, Shree Cement, Marico, and DLF have already come out with their numbers, action in the wider market will depend on performance from the next lot of large caps and sectors including BFSI, auto, and energy. Analysts point out that Q1 results till date indicate moderate growth, with private banks and defence, auto, and some pharma companies delivering good numbers, but IT and small financials falling behind. Stock-specific momentum is expected to take centre stage as players analyse management commentaries for indications of sustained growth or sector rotation.
Market experts emphasize that domestic equities are bracing for volatility this week. Attention is tightly focused on the RBI’s monetary policy decision due later this week—its commentary on inflation, liquidity, and forward guidance could spark sharper moves. Foreign institutional investors have stayed net sellers, while domestic institutions have absorbed supply, yet caution persists until some global clarity emerges.
Siddhartha Khemka of Motilal Oswal Wealth Management said, “Mixed earnings and continued FII outflows could keep the markets range-bound, with macro cues from the RBI and global PMIs closely tracked.” Religare’s Ajit Mishra added, “Our eyes are on the RBI’s August 6 verdict. Till then, expect a tight, choppy range.”
Traders can look for a flat-to-positive opening for Indian equities tomorrow with contributions from the GIFT Nifty's resilience, mixed global equities, reasonably good Q1 corporate results, and a wait-and-watch sentiment with the RBI policy announcement. The stock action would be sector and result driven with chances of volatility spikes on any surprise geopolitical or macro development.
