Indian Stock Market Trends 2025: Sensex, Nifty 50 & Sector Surges – What’s Driving Dalal Street Today?
Will the Indian stock market rebound or plummet on 04 August 2025? As Sensex and Nifty50 hover near critical support levels, Bank Nifty shows surprising resilience. Uncover top gainers like Canara Bank and losers like TCS, plus stocks to watch with game-changing potential. With global tariffs looming and Q1 earnings shaking investor confidence, our exclusive technical analysis reveals hidden opportunities and risks.
The Indian stock market, comprising key indices like Sensex, Nifty50, and Bank Nifty, has been navigating a volatile phase in 2025, influenced by global economic cues, domestic earnings, and geopolitical developments. As we approach Monday, 04 August 2025, investors are keen to understand the trading outlook, support and resistance levels, and market predictions for the day. This comprehensive blog post delves into the latest Indian stock market news, provides Nifty50 and Bank Nifty predictions, lists the top 10 gainers and losers, and highlights top stocks to watch with detailed technical analysis to help traders and investors make informed decisions.
Market Overview: Sensex, Nifty50, and Bank Nifty Performance
The Indian stock market has experienced significant volatility in recent weeks, with the Sensex and Nifty50 witnessing a bearish trend. On 01 August 2025, the Sensex closed at 82,253.46, down 247 points (-0.3%), while the Nifty50 settled at 24,565.35, declining 205.4 points (-0.81%). The Bank Nifty index showed resilience, closing marginally higher by 0.02% at 56,765.35, supported by mid-sized banks like Canara Bank and Federal Bank. However, the broader market sentiment remains cautious due to global uncertainties, including U.S. tariff threats and upcoming FOMC policy decisions.
The Nifty50 has slipped below key technical levels, including the 200-day EMA, signaling bearish momentum. The Relative Strength Index (RSI) for Nifty50 is below 40, indicating a lack of buying strength. Similarly, Bank Nifty faces resistance at 56,366, with support at 55,618. Sensex support is seen at 81,762, with resistance at 82,745. These levels are critical for traders to monitor on 04 August 2025.
Key Factors Influencing the Market on 04 August 2025
- Global Cues: The U.S. Federal Reserve’s upcoming policy announcement and potential 25% tariffs on Indian exports are weighing on investor sentiment. A recovery in the U.S. Dollar and rising crude oil prices are also pressuring the Indian Rupee, which closed at 86.82 against the USD.
- Q1 Earnings Season: Mixed corporate earnings, particularly from IT giants like TCS (-3.47%) and auto stocks like M&M (-2.92%), have contributed to the recent sell-off. However, select banking and pharma stocks have shown resilience.
- Technical Indicators: The Nifty50 is trading below its 200-day EMA, with the daily RSI signaling bearish momentum. Bank Nifty shows cautious optimism, supported by mid-sized banks.
- FII and DII Activity: Sustained selling by Foreign Institutional Investors (FIIs) and cautious buying by Domestic Institutional Investors (DIIs) are shaping market dynamics.
Support and Resistance Levels for 04 August 2025
Understanding support and resistance levels is crucial for intraday trading and swing trading strategies. Below are the key levels for Sensex, Nifty50, and Bank Nifty based on recent technical analysis:
- Sensex:
- Support: 81,762 / 81,459
- Resistance: 82,745 / 83,048
- Outlook: A close below 81,459 could lead to further declines toward 80,500–80,350. A breakout above 82,745 may signal a pullback rally to 81,700.
- Nifty50:
- Support: 24,450 / 24,400
- Resistance: 24,800 / 25,000
- Outlook: The index is below the 200-day EMA, with bearish signals from RSI and Bollinger Bands. A breach below 24,400 could trigger a deeper correction to 23,250. A close above 24,800 is needed for bullish momentum.
- Bank Nifty:
- Support: 55,618 / 55,088
- Resistance: 56,366 / 56,098
- Outlook: The index shows cautious optimism, with mid-sized banks driving gains. A close above 56,366 could push it toward 57,000, while a drop below 55,618 may test 54,500.
These levels are derived from technical analysis using tools like Exponential Moving Averages (EMAs), RSI, and Fibonacci retracement, making them essential for traders planning intraday or positional trades.
Nifty50 and Bank Nifty Predictions for 04 August 2025
The Nifty50 is expected to open on a cautious note on 04 August 2025, with GIFT Nifty futures indicating a flat-to-negative start at around 24,394. The index’s recent failure to reclaim the 200-day EMA and RSI below 40 suggest continued bearish momentum. However, oversold conditions could trigger a short-term rebound if global cues improve. Traders should watch for:
- Bullish Scenario: A close above 24,800 could spark a recovery toward 25,000–25,100, supported by short-covering in oversold stocks like Reliance and HDFC Bank.
- Bearish Scenario: A breach below 24,400 may lead to a deeper correction toward 24,250 or lower, driven by profit booking in auto and IT sectors.
The Bank Nifty index has shown resilience, supported by mid-sized banks like Canara Bank (+1.56%) and Federal Bank (+1.54%). However, heavyweights like HDFC Bank (-0.04%) and Kotak Bank (-0.76%) have limited gains. For 04 August 2025:
- Bullish Scenario: A breakout above 56,366 could push the index toward 57,000, with support from PSU banks and positive global banking cues.
- Bearish Scenario: A drop below 55,618 may test 55,088 or lower, especially if FII selling intensifies.
Traders should monitor open interest (OI) data, with the highest call OI at 24,800 for Nifty and 56,000 for Bank Nifty, indicating key resistance zones.
Top 10 Gainers and Losers: Recent Market Performance
Based on the latest market data from 01 August 2025, here are the top 10 gainers and losers across the Nifty50 and Sensex constituents, reflecting the market’s mixed performance:
| Top 10 Gainers | % Change | Sector |
| Eternal | +2.75% | Consumer |
| Titan | +1.28% | Consumer |
| IndusInd Bank | +1.02% | Banking |
| ICICI Prudential | +1.79% | Insurance |
| SBI Life | +0.88% | Insurance |
| Canara Bank | +1.56% | Banking |
| Federal Bank | +1.54% | Banking |
| Bank of Baroda | +1.47% | Banking |
| Axis Bank | +0.63% | Banking |
| Sun Pharma | +0.71% | Pharma |
| Top 10 Losers | % Change | Sector |
| TCS | -3.47% | IT |
| M&M | -2.93% | Auto |
| Hero MotoCorp | -2.74% | Auto |
| Bajaj Auto | -2.54% | Auto |
| Wipro | -2.62% | IT |
| Tata Motors | -2.39% | Auto |
| L&T | -1.26% | Infra |
| Infosys | -1.54% | IT |
| Reliance | -1.46% | Conglomerate |
| HDFC Bank | -1.16% | Banking |
Source: Data compiled from recent market reports.
The top gainers were led by consumer and banking stocks, with Eternal and ICICI Prudential showing strong performance. Conversely, top losers were dominated by IT and auto stocks, reflecting profit booking and weak Q1 earnings. Traders should monitor these stocks for potential reversals or continued trends on 04 August 2025.
Top Stocks to Watch on 04 August 2025
Here’s a detailed technical analysis of top stocks to watch for Monday, based on their recent performance, sector trends, and technical indicators:
1. Larsen & Toubro (L&T)
- Sector: Infrastructure
- Recent Performance: Gained nearly 4% on 25 July 2025 after strong Q1 earnings, but declined 1.26% on 01 August.
- Technical Outlook: L&T is trading near its 50-day EMA, with support at ₹3,500 and resistance at ₹3,800. The RSI is neutral at 50, indicating potential for a breakout if it crosses ₹3,800.
- Trading Strategy: Buy on dips near ₹3,500 with a stop-loss at ₹3,450 and a target of ₹3,900. Watch for volume spikes to confirm bullish momentum.
2. HDFC Bank
- Sector: Banking
- Recent Performance: Declined 1.16% on 01 August, dragging both Nifty50 and Bank Nifty due to its significant weightage.
- Technical Outlook: The stock is testing support at ₹1,600, with resistance at ₹1,700. The RSI is below 40, indicating oversold conditions.
- Trading Strategy: Accumulate near ₹1,600 with a stop-loss at ₹1,580 and a target of ₹1,750. A close above ₹1,700 could signal a short-term reversal.
3. Reliance Industries
- Sector: Conglomerate
- Recent Performance: Fell 1.46% on 01 August, contributing to the Nifty50 decline.
- Technical Outlook: Trading below the 200-day EMA at ₹2,900, with support at ₹2,800 and resistance at ₹3,000. The MACD shows a bearish crossover.
- Trading Strategy: Short-term traders can sell on a rise to ₹2,950 with a stop-loss at ₹3,000 and a target of ₹2,800. Long-term investors may wait for a close above ₹3,000.
4. Sun Pharma
- Sector: Pharmaceuticals
- Recent Performance: Gained 0.71% on 01 August, bucking the broader market trend.
- Technical Outlook: Trading above the 50-day EMA at ₹1,600, with support at ₹1,550 and resistance at ₹1,700. The RSI is at 55, indicating room for upside.
- Trading Strategy: Buy above ₹1,600 with a stop-loss at ₹1,550 and a target of ₹1,750. Positive pharma sector sentiment supports further gains.
5. Canara Bank
- Sector: Banking
- Recent Performance: Rose 1.56% on 01 August, supporting Bank Nifty’s marginal gain.
- Technical Outlook: Trading near its 52-week high, with support at ₹110 and resistance at ₹120. The RSI is at 60, suggesting bullish momentum.
- Trading Strategy: Buy on dips to ₹110 with a stop-loss at ₹105 and a target of ₹125. PSU bank strength could drive further upside.
Sectoral Trends to Watch
- Banking: Bank Nifty remains a focal point, with mid-sized banks outperforming heavyweights. Watch PSU banks like Canara Bank and Bank of Baroda for potential outperformance.
- Pharma: Stocks like Sun Pharma and Dr. Reddy’s are showing resilience amid a broader market sell-off, driven by defensive investor interest.
- IT: Weak Q1 earnings from TCS and Wipro have dragged the sector lower. Avoid aggressive positions until technical indicators show a reversal.
- Auto: Profit booking in stocks like M&M and Hero MotoCorp suggests caution. Wait for support levels to stabilize before entering.
- Realty and Energy: These sectors showed gains on 29 July, but volatility persists. Monitor for breakout signals above key resistance levels.
Trading Strategies for 04 August 2025
- Intraday Trading:
- Focus on stocks with high volume and clear support/resistance levels, such as HDFC Bank and Canara Bank.
- Use RSI and MACD to identify overbought or oversold conditions for quick trades.
- Set tight stop-losses to manage volatility, especially given global uncertainties.
- Swing Trading:
- Target stocks like Sun Pharma and L&T, which are near key support levels with potential for a rebound.
- Monitor Nifty50’s movement around 24,800 for directional cues.
- Positional Trading:
- Accumulate banking and pharma stocks on dips, as these sectors show relative strength.
- Avoid IT and auto stocks until they reclaim key EMAs or show bullish candlestick patterns.
Risks and Challenges
- Global Uncertainties: U.S. tariff threats and FOMC policy outcomes could trigger sharp market movements.
- FII Selling: Continued outflows may pressure large-cap stocks like Reliance and HDFC Bank.
- Earnings Volatility: Ongoing Q1 results could lead to stock-specific movements, especially in IT and auto sectors.
- Rupee Depreciation: A weaker Rupee at 86.82 could increase import costs, impacting sectors like oil and gas.
Final Thought
The Indian stock market on 04 August 2025 is likely to remain volatile, with Sensex, Nifty50, and Bank Nifty navigating critical support and resistance levels. Traders should focus on technical analysis, monitor top gainers and losers, and prioritize stocks to watch like L&T, HDFC Bank, Reliance, Sun Pharma, and Canara Bank. With global cues and domestic earnings shaping sentiment, a cautious approach with disciplined trading strategies is essential. Stay updated with latest stock market news and leverage SEO-optimized insights like this blog to stay ahead in the Indian stock market.
Disclaimer: Investing in the stock market involves risks. Consult with certified financial advisors before making investment decisions. The views expressed are based on technical analysis and market data as of 01 August 2025 and may not reflect real-time conditions on 04 August 2025.
