The Nifty 50 closed 0.64 percent lower on Aug 4 after four consecutive sessions of gains. Profit booking and consolidation were the main reasons for the dip, but the index still trades well above all key moving averages.
Technical analysis shows immediate support around the 24,500‑24,400 zone. If the index stays below Monday’s high of 24,744, the market will likely remain in a consolidation phase. To trigger a sharp up‑move toward the 25,000‑25,150 area, the Nifty must reclaim and hold above 24,744, which is the bearish gap created on Mar 2 2026.
Pivot‑point resistance levels sit at 24,688, 24,753 and 24,858, while support levels are 24,477, 24,412 and 24,306. A small bearish candle with a long lower shadow appeared on the daily chart, signalling buying interest at lower levels.
The Nifty continues to trade above all key moving averages. Short‑ and medium‑term averages trend northward, and the index remains above the downward‑sloping trendline that had acted as resistance earlier. RSI fell to 61.77 but stayed above its reference line, and MACD shows an upward trend after a bullish crossover.
Bank Nifty mirrored the Nifty’s movement, falling 0.6 percent on profit booking and forming a Nifty‑like candlestick pattern. It still trades above key moving averages and the 23.6 percent Fibonacci retracement from the May low to the June high. RSI is at 55.25, and MACD is near a bullish crossover, indicating a still‑positive trend.
Weekly options data highlight the 24,600 strike as the maximum Call open interest (64.12 lakh contracts), followed by 25,000 (62.18 lakh) and 24,800 (52.06 lakh). Maximum Call writing occurred at 24,600 (36.03 lakh contracts). On the Put side, the 24,500 strike led with 38.78 lakh contracts.
Monthly options data show 58,000 as the top Call open interest (23.14 lakh contracts), followed by 57,000 and 57,500. For Puts, 58,000 again tops the list with 15.68 lakh contracts, while 57,000 and 57,500 trail.
The Nifty Put‑Call ratio fell to 0.99 on Aug 4, down from 1.4 the previous day, signalling a slight shift toward bearish sentiment. The India VIX rose 2.22 percent to 12.19 but remains below key moving averages and the 14‑15 alarm zone.
Stock‑level activity shows 40 stocks with rising open interest and price, indicating long build‑ups. 51 stocks saw falling open interest and price, signalling long unwinding. 71 stocks had higher open interest but lower price, pointing to short build‑ups, while 47 stocks displayed short‑covering.
The F&O ban now includes Life Insurance Corporation of India, adding to the list of securities where derivative contracts exceed 95 percent of the market‑wide position limit.