Indian Stock Market Outlook for Thursday, 07 August 2025

The Indian stock market on August 7, 2025? As Sensex and Nifty50 face tariff threats and RBI’s steady policy, volatility looms. Discover Bank Nifty predictions, critical support and resistance levels, and the top 10 gainers and losers shaking the market. Which stocks like L&T and HDFC Bank should you watch?

The Indian stock market, comprising benchmarks like Sensex, Nifty50, and Bank Nifty, has been navigating a volatile phase in 2025, influenced by global economic cues, domestic earnings, and policy developments. As we approach Thursday, 07 August 2025, traders and investors are keenly focused on support and resistance levels, latest market news, and stock-specific opportunities. This blog post provides a detailed Indian stock market prediction for 07 August 2025, incorporating technical analysis, top 10 gainers and losers, and top stocks to watch for informed trading decisions.

Market Overview and Latest News

The Indian stock market has faced headwinds in recent weeks, with the Sensex and Nifty50 experiencing their longest losing streak in two years, driven by global uncertainties and persistent selling pressure. On 06 August 2025, the Sensex closed at 80,677.61, down 32.64 points, while the Nifty50 settled at 24,595.30, down 25.70 points. Bank Nifty ended at 55,618, slipping 344 points, reflecting caution in the financial sector. Key factors influencing the market include:

• RBI Policy Decision: The Reserve Bank of India (RBI) maintained the repo rate at 5.50% on 06 August, dampening hopes for rate cuts and impacting rate-sensitive sectors like banking and real estate.
• US Tariff Threats: Renewed trade tensions, particularly the US considering 20–25% tariffs on Indian exports, have dented investor sentiment.
• Earnings Season: Mixed Q1 FY26 earnings, with strong performances from companies like Larsen & Toubro (L&T) and underwhelming results from IT giants like TCS, are shaping market dynamics.
• FII and DII Activity: Foreign Institutional Investors (FIIs) sold ₹5,588 crore, while Domestic Institutional Investors (DIIs) bought ₹6,373 crore, indicating a tug-of-war in market sentiment.

As we look to 07 August, the market is expected to remain cautious, with traders eyeing support and resistance levels and global cues, particularly the US Federal Reserve’s commentary on inflation and potential rate decisions.

Technical Analysis: Sensex, Nifty50, and Bank Nifty Predictions

Sensex Outlook

The Sensex is currently in a negative trend, closing at 80,677.61 on 06 August. Technical indicators suggest:

• Support Levels: 80,500 and 80,200 are key support zones. A breach below 80,200 could lead to further declines toward 79,800.
• Resistance Levels: 81,453 is the critical resistance. A close above this level could signal a reversal to bullish momentum, targeting 82,000.
• Prediction for 07 August: Expect range-bound trading between 80,500–81,200 unless a breakout occurs. Traders should adopt a level-based trading strategy, buying near support and selling near resistance.

Nifty50 Outlook

The Nifty50 is trading in a bearish channel, closing at 24,595.30. Key technical insights include:

• Support Levels: 24,550–24,500 is a crucial support zone, reinforced by the 100-day EMA. A breakdown below 24,500 could push the index toward 24,370–24,200.
• Resistance Levels: 24,700–24,800 is a strong resistance zone. A decisive breakout above 24,800 could drive the index toward 25,000.
• RSI Analysis: The Relative Strength Index (RSI) is near 40, indicating a lack of bullish momentum but not yet oversold.
• Prediction for 07 August: The Nifty50 is likely to open flat near 24,600, with a neutral to bearish bias. Traders should monitor the 24,750–24,800 zone for a potential reversal or further downside to 24,500.

Bank Nifty Outlook

Bank Nifty closed at 55,618, down 344 points, reflecting selling pressure in banking heavyweights. Technical levels to watch:

• Support Levels: 55,000–55,100 is a strong support zone, backed by the 50-day SMA. A fall below 55,000 could trigger a decline to 54,600.
• Resistance Levels: 55,929 is the immediate resistance. A close above this level could push the index toward 56,200–56,500.
• Prediction for 07 August: Bank Nifty is likely to trade sideways between 55,100–55,800. A breakout above 55,929 could signal bullish momentum, while a drop below 55,000 may invite further selling.

Top 10 Gainers and Losers (Based on Recent Market Data)

The following table lists the top 10 gainers and top 10 losers from the Nifty50 index based on recent trading sessions, reflecting market dynamics as of 06 August 2025.

Note: Percentages are indicative and based on recent sessions. Actual performance on 07 August may vary.

Top Stocks to Watch: Detailed Analysis

Here’s a detailed analysis of top stocks to watch on 07 August 2025, based on technical setups, recent performance, and fundamental triggers:

1. Larsen & Toubro (L&T)

• Sector: Infrastructure
• Recent Performance: L&T surged nearly 4% after reporting better-than-expected Q1 FY26 earnings, with an 18.74% YoY net profit increase to ₹103.3 crore.
• Technical Setup: Trading above the 20-day EMA, with support at ₹3,600 and resistance at ₹3,800. RSI is at 55, indicating room for upside momentum.
• Why Watch?: Strong order book and infrastructure spending make L&T a top pick. Buy on dips near ₹3,600 with a stop-loss at ₹3,550, targeting ₹3,850–₹3,900.
• Risk: Global commodity price volatility could impact margins.

2. Trent

• Sector: Retail
• Recent Performance: Up 3.50% recently, driven by strong festive season expectations and robust Q1 results.
• Technical Setup: Bullish breakout above ₹5,200, with support at ₹5,100 and resistance at ₹5,400. RSI at 60 suggests sustained momentum.
• Why Watch?: Expansion in retail outlets and improving consumer sentiment favor Trent. Buy above ₹5,250 with a stop-loss at ₹5,100, targeting ₹5,500.
• Risk: High valuations may invite profit-booking.

3. Adani Ports

• Sector: Infrastructure
• Recent Performance: Gained 2.08% amid positive sentiment in logistics and port operations.
• Technical Setup: Holding above ₹1,400, with support at ₹1,380 and resistance at ₹1,450. RSI at 50 indicates neutral momentum.
• Why Watch?: Strong volume growth in port operations and strategic acquisitions make it a stock to watch. Buy above ₹1,420 with a stop-loss at ₹1,380, targeting ₹1,480.
• Risk: US tariff threats could impact export-driven businesses.

4. TCS

• Sector: IT
• Recent Performance: Down 3.47% due to lackluster Q1 earnings, dragging the IT sector lower.
• Technical Setup: Testing support at ₹4,000, with resistance at ₹4,200. RSI at 35 suggests oversold conditions, hinting at a potential bounce.
• Why Watch?: A recovery in global IT spending could lift TCS. Contrarian traders may consider buying near ₹4,000 with a stop-loss at ₹3,950, targeting ₹4,150.
• Risk: Continued FII selling and weak US demand could pressure the stock.

5. HDFC Bank

• Sector: Banking
• Recent Performance: Down 1.16% as financials faced selling pressure post-RBI’s unchanged policy stance.
• Technical Setup: Support at ₹1,600 and resistance at ₹1,700. RSI at 45 indicates neutral sentiment.
• Why Watch?: As a banking heavyweight, HDFC Bank’s movement influences Bank Nifty. Buy above ₹1,650 with a stop-loss at ₹1,600, targeting ₹1,720.
• Risk: Rising interest rates could impact loan growth.

Trading Strategies for 07 August 2025

1. Level-Based Trading

• Nifty50: Buy above 24,765 with a stop-loss at 24,700, targeting 24,850–24,950. Sell below 24,550 with a stop-loss at 24,600, targeting 24,370.
• Bank Nifty: Buy above 55,929 with a stop-loss at 55,800, targeting 56,200. Sell below 55,100 with a stop-loss at 55,300, targeting 54,600.
• Sensex: Buy above 81,453 with a stop-loss at 81,200, targeting 82,000. Sell below 80,500 with a stop-loss at 80,700, targeting 80,200.

2. Stock-Specific Approach

Focus on stocks with strong earnings momentum (e.g., L&T, Trent) for long positions and oversold stocks (e.g., TCS) for contrarian trades. Maintain strict stop-losses to manage volatility.

3. Hedging with Options

Given the bearish bias, consider put options for Nifty50 near 24,700 or call options for Bank Nifty above 55,929 to capitalize on potential breakouts.

Key Factors to Watch

• RBI Commentary: Post-policy remarks on inflation and growth could influence rate-sensitive sectors.
• US Fed Policy: Investors await cues on US interest rates, impacting FII flows.
• USD/INR Movement: The Indian Rupee closed at 86.82, with support at 86.30 and resistance at 87.05. A weaker rupee could pressure import-heavy sectors.
• Earnings Releases: Monitor results from companies like IndusInd Bank and Marico for sector-specific cues.

Final Thought

The Indian stock market on 07 August 2025 is likely to remain range-bound with a bearish tilt, driven by global trade tensions, RBI’s unchanged policy, and mixed earnings. Sensex, Nifty50, and Bank Nifty will hinge on key support and resistance levels, with 24,550–24,800 and 55,100–55,929 being critical zones to watch. Stocks like L&T, Trent, and Adani Ports offer bullish opportunities, while TCS and HDFC Bank require caution. Traders should adopt a level-based strategy, monitor latest news, and consult certified financial advisors before making investment decisions.

Disclaimer: The above analysis is for informational purposes only and not investment advice. The stock market is subject to risks; consult a SEBI-registered advisor before trading.