MARKET ANALYSIS (NIFTY 50) AS ON 07AUGUST'2025

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NIFTY 50 Market Analysis — As on 07 August 2025

Despite today's recovery in Nifty 50, the buying pressure and volume observed do not align well with underlying data metrics and market internals. From a data analysis perspective, today’s bullish activity lacks strong confirmation and appears technically unconvincing. The upward momentum seems more sentiment-driven rather than supported by fundamentals or institutional participation.

The price action fails to meet the key parameters typically required to signal a genuine trend reversal. Hence, traders should wait for further confirmation, which may come in tomorrow’s session (08 August 2025). Until then, the trend remains unclear and potentially volatile.

Institutional Activity

FIIs (Foreign Institutional Investors) continue to remain net sellers, signaling cautious sentiment toward Indian equities. In the month of August so far, FIIs have withdrawn approximately ₹12,000 crores, reflecting sustained outflows and lack of confidence at current market levels.

On the contrary, DIIs (Domestic Institutional Investors) stepped in with strong support today, making net purchases worth ₹10,700 crores, primarily in the second half of the trading session. This institutional buying from DIIs helped support Nifty’s bounce from lower levels.

Technical & Sentiment Outlook

Nifty 50 is currently trading in a highly crucial zone, both technically and psychologically. Any break above or below this zone could lead to sharp directional movement.
- Given the absence of institutional support from FIIs and the lack of data-backed confirmation, today's bounce should be treated with caution. A false breakout or a bull trap cannot be ruled out.
Market participants are advised to stay cautious, especially near resistance levels, and closely monitor tomorrow’s price action and volume dynamics.

Conclusion

Traders should avoid aggressive positioning. The short-term outlook remains uncertain, and any directional trade should be executed with proper risk management and hedging in place.

Disclaimer

This market analysis is for informational and educational purposes only. It does not constitute investment advice, recommendation, or solicitation to buy or sell any securities. Market participants should consult with a certified financial advisor before making any investment decisions. Trading and investing involve substantial risk.

Location: Ludhiana, Punjab, India

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