Indian equity benchmark indices are expected to open on a cautious note this Tuesday, August 4, 2026. GIFT Nifty Futures on the NSE International Exchange were up 22.60 points, or 0.00 percent, at 24,672, indicating a muted start for the domestic market.
Global Cues and Investor Sentiment
US stocks began August strongly, driven by signs of de-escalating US-Iran tensions. This development has contributed to a fall in crude oil prices and Treasury yields, creating a positive global backdrop. Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, noted that improving global risk sentiment, coupled with encouraging earnings and easing crude prices, supports a positive bias for the Indian market.
Asian markets showed cautious gains, following the global rally, though Nikkei and KOSPI saw early declines of 1-2 percent, while Hang Seng rose by half a percent.
Crude Oil, US Dollar, and Institutional Flows
Oil prices saw limited gains in Asian trading, with Brent crude up 0.6 percent at $84.29 a barrel. The US dollar index remained near its two-month low at 99.99, and the yield on the US 10-year Treasury bond slightly increased to 4.684 percent.
Investor sentiment also improved following a sharp decline in Brent crude prices, fueled by renewed optimism surrounding diplomatic talks between the US and Iran. Ajit Mishra, SVP of Research at Religare Broking, advises a 'buy-on-dips' strategy, favoring sectors like banking, financials, auto, and realty.
Provisional data from NSE indicates that Foreign Portfolio Investors (FPIs) were net sellers of domestic stocks on Monday, offloading Rs 922.26 crore. Conversely, Domestic Institutional Investors (DIIs) were net buyers, injecting Rs 1,571.18 crore into Indian equities.
Nifty50 and Sensex Outlook
Nifty has demonstrated an excellent breakout, decisively surpassing the crucial overhead resistance of 24,400-24,500 levels, according to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities. The underlying trend remains positive, with the next upside targets at 24,800-25,000 in the near term. Immediate support for Nifty is placed at 24,400.
Sensex maintains a positive structure, with 77,800–77,600 acting as the immediate support zone. Sachin Gupta, VP-Technical Research at Choice Equity Broking, states that as long as Sensex holds above this range, the overall trend is expected to remain bullish. Immediate resistance is between 78,300–78,500, and a sustained breakout could lead to a rally towards 78,800–79,000.
India VIX declined to 11.81, signaling that market volatility remains contained despite the recent advances.
Nifty Bank Technical Analysis
Nifty Bank is currently in a range-bound phase, oscillating between its 20-day and 50-day Exponential Moving Averages (EMAs), indicating a lack of clear directional trend. Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, identifies immediate resistance for Bank Nifty in the 57,500-57,600 zone, with a sustainable move above this potentially extending to 58,000 and then 58,400. Immediate support is at 56,700-56,600.
Vatsal Bhuva, Technical Analyst at LKP Securities, noted a positive technical breakout for Nifty Bank as it reclaimed its 20-DMA and 200-DMA, closing with a bullish candlestick. The index also surpassed the crucial resistance of 57,500, reinforcing a positive outlook. A 'buy-on-dips' strategy is advised, with immediate support at 57,450–57,400 and resistance at 58,200 and 58,500.