Indian stock markets are expected to open with a positive bias on Tuesday, August 4, 2026, building on the strong momentum generated in the previous trading session. The positive sentiment is primarily underpinned by easing international crude oil prices, favorable global market conditions, and widespread buying participation across key market sectors. However, market participants are expected to maintain a degree of caution as they await the outcome of the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) decision scheduled for August 5.
Throughout the week, market participants will also closely monitor movements in Brent crude oil prices, the ongoing corporate earnings reporting season, and upcoming domestic Manufacturing and Services Purchasing Managers' Index (PMI) data. These economic indicators and corporate announcements are expected to dictate market direction over the coming days.
Broad-Based Rally Marked Monday Trading Session
On Monday, Indian equity benchmarks staged an impressive performance after opening higher with a gap-up and maintaining steady buying pressure throughout the day. A pull-back in Brent crude oil prices below the USD 85 per barrel threshold, combined with signs of easing geopolitical friction, bolstered investor confidence and encouraged greater exposure to risk assets.
The upward move was widely distributed across sectors, allowing both primary headline indices to settle near their highest points of the day. The Nifty 50 surged by 1.60% to close at 24,774, while the BSE Sensex rose by 0.70% to finish at 78,639.
Technical Picture and Target Levels for Nifty 50
From a technical standpoint, analysis from Bajaj Broking Research indicates that the Nifty 50 has significantly improved its chart structure following a breakout from a three-month consolidation pattern. The brokerage highlighted that the index formed a well-defined bullish candle on the daily timeframe featuring higher highs and higher lows, while successfully closing above the upper boundary of its recent range.
During Monday's trade, the benchmark tested its 200-day Simple Moving Average (SMA), reflecting strengthening underlying momentum. Market analysts suggest that this clear breakout from the triangular consolidation setup could pave the way for the index to advance toward the 25,000-25,200 range in upcoming sessions.
However, technical indicators also urge short-term caution. The daily stochastic oscillator has risen to a reading of 91, pushing into overbought territory. This condition suggests that brief profit taking or consolidation at elevated price points cannot be ruled out.
The broader technical bias remains constructive, suggesting that minor pullbacks in the coming sessions could present strategic buying opportunities. On the downside, immediate support is identified at the 24,500-24,400 level, while key short-term support lies at 24,200, representing the confluence of a key retracement level of the current upward leg and the 20-day Exponential Moving Average (EMA).
Bank Nifty Structure and Critical Technical Zones
The banking benchmark, Bank Nifty, also carried forward its upward trajectory on Monday, producing a strong bullish candle characterized by a higher high and higher low. Crucially, the index posted a firm close above the key psychological mark of 58,000.
According to Bajaj Broking Research, Bank Nifty had spent the preceding seven weeks consolidating inside a defined band of 56,500 to 58,700. A decisive move and sustained close above the upper boundary at 58,700 could trigger a fresh wave of buying interest, potentially driving the index higher toward the 59,300 and 60,000 milestones.
Conversely, should the index fail to hold above 58,700, Bank Nifty may continue to range-trade between 57,000 and 58,700 until a clearer direction is established. To the downside, the 56,500-56,000 region represents a vital demand zone. This support area is heavily reinforced by the bottom band of its recent six-week range, an ascending trendline, and the 52-week EMA. As long as the index remains above this multi-layered support zone, the broader market outlook remains positive.
