Among sectors, almost all the major sectoral indices traded in positive territory, but the Metal and Defense indices outperformed, rallying over 2.5 percent.
Shrikant Chouhan,
Head Equity Research,
Kotak Securities
Mumbai, 4 August, 2025: Today, the benchmark indices witnessed a promising pullback rally. The Nifty ends 157 points higher, while the Sensex was up by 419 points. Among sectors, almost all the major sectoral indices traded in positive territory, but the Metal and Defense indices outperformed, rallying over 2.5 percent. Technically, after a sharp correction on intraday charts, the market has formed a reversal pattern, and on daily charts, it has formed a bullish candle, which is largely positive. We are of the view that, in the short term, the market's texture is weak but oversold; hence, a sharp technical bounce back is not ruled out from the current levels.
For day traders, 24,550 / 80,600 and 24,500 / 80,500 would act as key support zones, while 24,850-24,950 / 81,500-81,800 could be the key resistance areas for the bulls. However, below 24,500 / 80,500, the sentiment could change. Below this level, traders may prefer to exit their long positions.
Gaurav Garg, Lemonn Markets Desk, adds: “Markets staged a strong comeback on Monday, reversing early losses as upbeat auto and metal stocks powered the recovery. The Sensex rose over 500 points from the day’s low to close 419 points higher, while the Nifty ended just below the 24,730 mark, up 162 points. Hero MotoCorp, Tata Steel, and Eicher Motors were among the top gainers, buoyed by strong earnings and monthly volume data. The Nifty Auto index jumped over 1% on the back of robust results from TVS Motor and strong dispatch numbers from Hero MotoCorp. Meanwhile, a 1.6% rise in metal stocks, driven by a weaker dollar and firmer commodity prices, provided additional support.
The rebound was also aided by positive cues from Asian markets and a decline in crude oil prices, which helped soothe inflation concerns. Broader market sentiment improved with firm global signals, and the India VIX cooled off slightly, reflecting lower volatility expectations. From a technical standpoint, we believe the market may have entered an oversold zone, with potential for further recovery. However, the sustainability of this rebound will depend on the Nifty’s ability to hold above 24,670. A failure to do so could once again tilt momentum in favor of the bears.”
