Indian equity benchmark indices are expected to commence trading on a positive note today, Thursday, August 6, 2026. This optimistic outlook is largely influenced by a favorable GIFT Nifty, which was up 58.30 points, or 0.24 per cent, at 24,706 on the NSE International Exchange, signaling a strong start for the domestic market.
Global and Domestic Factors Influencing Market Sentiment
The positive bias for Indian equities is bolstered by several domestic factors, including steady Brent crude prices, which are improving the outlook for inflation and corporate profit margins. Global cues, however, present a mixed picture, maintaining a balanced rather than exuberant risk sentiment. The macroeconomic narrative has become increasingly supportive in recent weeks.
Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, noted that with the Reserve Bank of India (RBI) maintaining its policy stance and the ongoing Q1FY27 earnings season, stock-specific action is anticipated to remain the dominant market theme. Oil prices remained stable, with Brent crude futures at $79.31 per barrel and US West Texas Intermediate futures at $74.96 a barrel.
Asian and US Market Performance
Asian shares experienced a pause on Thursday following an AI-driven surge the previous day. In the US, the Dow Jones Industrial Average closed at a record high on Wednesday, rising 0.49 per cent to 54,349.06, partly due to signs of progress on a peace deal. Conversely, the S&P 500 shed 0.17 per cent to 7,723.52, and the Nasdaq Composite fell 0.83 per cent to 26,363.44, marking its first decline in five sessions after some tech stocks stumbled.
Analyst Insights and Key Levels
Ajit Mishra, SVP of Research at Religare Broking, highlighted that investor sentiment remains largely positive after the RBI kept the repo rate unchanged. He added that participants are monitoring geopolitical cues and crude oil prices, recommending a 'buy-on-dips' strategy focusing on stronger sectors with disciplined risk management.
Nifty50 and Sensex Outlook
Shrikant Chouhan, Head of Equity Research at Kotak Securities, indicated that the market is currently experiencing range-bound activity. For traders, crucial short-term support for Nifty50 is identified at 24,500-24,450, while 24,700-24,750 serves as a key resistance area. A decisive breakout above 24,750 could propel Nifty towards 24,850-24,900. Conversely, a fall below 24,450 could push it towards 24,300.
For Sensex, support levels are at 78,200-78,000, with resistance at 78,900-79,000. A break above 79,000 could see Sensex move towards 79,300-79,500, while a drop below 78,000 might lead to 77,500.
Rupak De, Senior Technical Analyst at LKP Securities, noted that Nifty remained range-bound, finding support at 24,500 but failing to sustain above 24,700. He places immediate support at 24,400 and crucial resistance at 24,800, with a decisive move above the latter potentially triggering a meaningful rally.
Hitesh Tailor, Technical Research Analyst at Choice Equity Broking, observed that Sensex trades above its 20-Day, 50-Day, and 100-Day Exponential Moving Averages (EMA), indicating a constructive short-to-medium-term trend. However, a decisive breakout above the 200-Day EMA is still awaited.
From a Derivatives perspective, Dhupesh Dhameja, Derivatives Research Analyst at SAMCO Securities, pointed out that India VIX declined to 12.06, reflecting subdued volatility and improving market confidence among traders.
Nifty Bank Outlook
Nifty Bank has struggled to maintain higher levels but has held above its 20-day EMA for the past two sessions, suggesting an intact near-term bullish structure despite profit booking. Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, states that immediate resistance for Nifty Bank is in the 58,100-58,200 zone. A sustainable move above this could extend its pullback towards 58,600 and then 59,000. Immediate support is at 57,400-57,300.
Bajaj Broking noted that Nifty Bank formed an inside bar candle, indicating indecision within its broader 56,500–58,700 range. A decisive breakout above 58,700 would signal an uptrend resumption. On the downside, the 57,400 20-day EMA zone acts as immediate support, followed by 57,000–56,800.
FII-DII Flows
Provisional data from NSE revealed that Foreign Portfolio Investors (FPIs) were net buyers of domestic stocks on Wednesday, with inflows totaling Rs 2,883.17 crore. Conversely, Domestic Institutional Investors (DIIs) were net sellers, offloading Indian equities worth Rs 943.42 crore.