The market reaction on Friday was broadly negative, reflecting cautious investor sentiment. The Nifty 50 opened flat and remained weak throughout the day, closing lower amid persistent selling pressure. Sentiment was weighed down by global uncertainties, including the imposition of new tariffs and continued foreign institutional investor outflows.
Most sectoral indices declined, with notable weakness in pharma, healthcare, and metal stocks, indicating risk-off behaviour. However, defensive sectors like FMCG outperformed, suggesting a shift toward safer assets amid volatility. Overall, the tone across the markets was risk-averse, with bearish undertones dominating due to unfavourable global cues and concerns over trade and earnings.
In this overview, we will analyse the key technical levels and trend directions for Nifty and BSE Sensex to monitor in the upcoming trading sessions. All the charts mentioned below are based on the 5-minute timeframe.
Nifty 50
(In this analysis, we have used 20/50/100/200 EMAs, where 20 EMA (Red), 50 EMA (Orange), 100 EMA (Light Blue), and 200 EMA (Dark Blue)).
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The Nifty 50 Index opened on a negative note at 24,734.90 on Friday, down by -33.45 points from Thursday’s closing of 24,768.35. In the morning session, the Nifty Index started in a bearish trend and made its day’s high at 24,784.15 but was later dragged down to the 24,600 level. Trading below its opening level, it was trading in the range of 24,600 to 24,800 in the morning session. It was trading below all four EMAs, the 20/50/100/200-day, in the 15-minute time frame.
In the afternoon session, the Nifty Index further lost its momentum and fell below the 24,600 level and closed at 24,565.35 in the red. During the afternoon session, it closed below all the 20/50/100/200 EMAs in the 15-minute time frame. Nifty’s immediate resistance levels are R1 (24,886), R2 (25,076), and R3 (25,249), while immediate support levels are S1 (24,506), S2 (24,380), and S3 (24,225).
The Nifty index had reached a day’s high at 24,784.15, closed in red below the 24,600 level, and saw a day’s low at 24,535.05. Finally, it had closed below its opening level at 24,565.35, losing -203 points, or 0.82%. The Relative Strength Index (RSI) stood at 36.01 (below the overbought zone of 70 but nearing the oversold zone in the daily time frame), and the Nifty 50 closed above the 200 EMAs and remained below the 20/50/100 EMA in the daily time frame.
Bank Nifty
(In this analysis, we have used 20/50/100/200 EMAs, where 20 EMA (Red), 50 EMA (Orange), 100 EMA (Light Blue), and 200 EMA (Dark Blue)).
The Bank Nifty Index started the session on a negative note at 55,897.15 on Friday, down by -64.8 points from Thursday’s closing of 55,961.95. In the morning session, the index started the session on a bearish trend and made its day’s high at 56,097.60, but later the index lost its momentum and fell to the 55,778 level and traded below its opening level. In the morning session, it was trading between the range of 55,700 to 56,000 levels. The Index was trading below all four EMAs of 20/50/100/200 in the 15-minute time frame in the morning session.
In the afternoon session, the Bank Nifty index further lost its momentum and was dragged down to the 55,600 level from its day’s high of 56,000, closing at 55,617.60 in red. During the afternoon session, it closed below all four EMAs of 20/50/100/200 EMAs in a 15-minute time frame. Bank Nifty immediate resistance levels are R1 (55,900), R2 (56,407), and R3 (56,725), while immediate support levels are S1 (55,569), S2 (55,161), and S3 (54,841).
The Bank Nifty index had peaked at 56,097.60 and made a day’s low at 55,562.10. Finally, it had closed in red at 55,617.60, breaking below the 55,700 level, losing -344.35 points, or 0.62%. The Relative Strength Index (RSI) stood at 38.40 (below the overbought zone of 70 but nearing the oversold zone in the daily time frame), and Bank Nifty was above the 100/200 EMAs but remained below the 20/50-day EMA in the daily time frame.
Sensex
(In this analysis, we have used 20/50/100/200 EMAs, where 20 EMA (Red), 50 EMA (Orange), 100 EMA (Light Blue), and 200 EMA (Dark Blue)).
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The BSE Sensex Index opened on a negative note at 81,074.41 on Friday, down by -111.17 points from Thursday’s closing of 81,185.58. The Index was more volatile in the morning session after a negative start but made the day’s high at 81,317.51, and later the bears took over the Friday session. It was trading at 80,826.55 below its opening level in the morning session. In the morning session, the index was trading in the range of 80,700 to 81,300 levels and was trading below all four EMAs of the 20/50/100/200 in the 15-minute time frame.
In the afternoon session, the Sensex Index further lost its momentum and dragged down to the 80,600 level from its day’s high at the 81,317.51 level and closed at 80,599.91 in the red. During the afternoon session, it traded below all four 20/50/100/200 EMAs in the 15-minute time frame. BSE Sensex immediate resistance levels are R1 (81,316), R2 (81,791), and R3 (82,560), while immediate support levels are S1 (80,346), S2 (79,308), and S3 (78,444).
The BSE Sensex index had peaked at 81,317.51 and made a day’s low at 80,495.57. Finally, it had closed at 80,599.91, down by -585.67 points, or 0.72%. The Relative Strength Index (RSI) stood at 40.81 (below the overbought zone of 70 but nearing the oversold zone in the daily time frame), and the BSE Sensex was above the 200 EMAs but remained below the 20/50/100 EMA in the daily time frame.
India VIX
The India VIX increased by 0.43 points, or 3.75%, from 11.54 to 11.98 during Friday’s session. An increase in the India VIX indicates greater stock price volatility and increased market risk or uncertainty.
Market Recap on the 1st of August 2025
The Nifty 50 opened the day flat at 24,734.9, down 33.45 points from the closing price of 24,768.35 the day before, and it stayed down all day. After plunging -203 points, or -0.82%, to a day low of 24,535 on Friday, the index closed at 24,565. The RSI was at 36.01, close to the oversold zone of 30, and the Nifty finished above the 200-day EMA and below the 20/50/100-day EMAs. The Sensex finished the day at 80,599.9, down -585.67 points, or -0.72%, with an RSI of 36.53. Following the Trump tariff, persistent FII selling, and negative global cues, the broad indices displayed cautious investor sentiment.
The majority of indices were lower on Friday. However, the Nifty FMCG Index was one of the largest winners, closing the day up 384.90 points, or 0.69%, at 56,197. Among the stocks that helped the index rise were Radico Khaitan Ltd., which saw a 3.81% increase; Emami Ltd., which saw a 3.1% increase; and Hindustan Unilever Ltd., which saw a 1.3% increase on Friday.
The Nifty Pharma Index saw the biggest drop of any sectoral laggard, dropping 759.35 points, or 3.33%, to settle at 22,011. Stocks including Aurobindo Pharma, Granules India, Sun Pharma, and Gland Pharma suffered the most losses, falling as much as 5%. With Aurobindo Pharma, Granules India, and Sun Pharma among the biggest losers, the Nifty Healthcare Index also saw a significant decline, dropping 411.55 points, or 2.77%, to close at 14,468.7. Another underperformer was the Nifty Metal Index, which closed the day at 9,102.3, down 183.10 points, or 1.97%.
Overall, Asian markets were down, with Hong Kong’s Hang Seng Index closing at 24,436.00, down -337.33 points, or -1.38%. Likewise, the Nikkei 225 Index of Japan ended the day lower at 40,845.00, down -224.82 points, or -0.55%. The Shanghai Composite Index dropped -13.26 points, or -0.37%, to settle at 3,559.95. The KOSPI Index for South Korea ended the day flat at 3,119.41, down -4.04%, or -126.03 points. At 5:14 p.m. IST, the US Dow Jones Futures were down -341.13 points, or -0.78%, at 43,790.85.
This week’s -1.09% decline in the Nifty 50 index was caused by a number of factors, including ongoing discussions on the US-India trade accord, a dismal continuation of the earnings season, and 25% US tariffs on India starting on August 1.
Trade Setup Summary
The Nifty 50 opened on a negative note at 24,734.90 on Friday, was more volatile in the morning session, lost momentum in the afternoon session, and closed below the 24,600 level at 24,565.35. A break below 24,506 could trigger further selling towards 24,380, while a break above 24,886 could trigger bullishness towards 25,076.
Bank Nifty started the session on a negative note at 55,897.15; throughout the session, the index was in red and ended at 55,617.60, near the 55,600 level. A break below 55,569 could trigger further selling towards 55,161, while a break above 55,900 could trigger bullishness towards 56,407.
Sensex opened on a similar trend as Nifty 50, opening on a negative note at 81,074.41 on Friday and ending in red at 80,599.91, breaking below the 80,600 level. A break below 80,346 could trigger further selling towards 79,308, while breaking the next resistance level of 81,316 could lead towards the 81,791 level.
Given the ongoing volatility and mixed sentiments, it’s advisable to avoid aggressive positions and wait for clear directional moves above resistance or below support. Traders should consider these key support and resistance levels when entering long or short positions following the price break from these critical levels. Additionally, traders can combine moving averages to identify more accurate entry and exit points.
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