Stock Forecast: Potential Prolongation of Downward Trend for Dow Jones Industrial Average
As of August 9, 2025, the market outlook for Nifty 50 and Nifty Bank based on F&O data and technical analysis indicates a cautious to weak sentiment with potential for short-term consolidation or downside risks.
Nifty 50
The Nifty 50 index has been trading in a range roughly between 24,550 support and 24,850 resistance, with volatility showing signs of pause. F&O data implies potential downside pressure, with analysts indicating a possibility of decline towards 23,900 if the support levels at around 24,400 break. Technical indicators show mixed signals, suggesting cautious or range-bound behavior in the near term.
FIIs were net sellers with significant outflows in early August; however, domestic institutions were buying, providing partial support for the index. Market events and sentiments, such as softer U.S. inflation data and expectations of Fed rate cuts, offer some positive undertones, but the outcome of global talks (e.g., U.S.–Russia) is awaited as a key external factor.
If Nifty 50 futures recover, it will face resistance at 24,600. A breakout of this can lift the contract to the resistance band of 24,900-25,000. The nearest notable support for Nifty 50 futures can be found at 24,000, with subsequent support at 23,800. Last week, a strategy was suggested to go short on Nifty 50 futures (Aug) if it slips below the support at 24,600. Traders who initiated this trade should retain the position with a stop-loss at 24,800 and book profits at 24,000. Participants who bought the 24500-put option (₹270.25) can also hold on to the trade with a target of ₹580 and a stop-loss of ₹140.
Nifty Bank
The outlook for Nifty Bank remains cautious to weak. The index faced resistance near the range of 57,100–57,571 while support levels were around 56,000–55,100. Price remains below key moving averages, reinforcing a "sell-on-rise" strategy among traders. On August 9, Bank Nifty closed weak at about 55,521, recovering from intraday lows but still showing vulnerability with downside support levels at 55,125 and 54,729; break below these could trigger a sharper decline.
If Nifty Bank futures recover, they can face a barrier at 55,500 and 56,000. Subsequent resistance for Nifty Bank futures is at 57,000. A drop in price and an increase in open interest suggest a short build-up in Nifty 50 futures (Aug).
The Put Call Ratio (PCR) of Nifty Bank futures (Aug) was 0.70 on Friday. The open interest of Nifty Bank futures (Aug) increased from 21.2 lakh contracts on August 1 to 29 lakh contracts on August 8.
In summary, the Nifty 50 is expected to see a cautious or slightly bearish phase with key levels to watch between 23,900 and 24,850, while Nifty Bank remains vulnerable with traders advised to sell on rallies and watch for support at about 55,100–55,125. Both indices show potential consolidation unless improving earnings or global cues shift sentiment.
- With the potential for downside risks, the technical analysis of the premium trading strategy suggests a cautious approach towards investing in Nifty 50, especially if the support at 24,600 breaks, as indicated by F&O data.
- In the realm of finance and business, Nifty Bank's outlook is cautious to weak, with traders advised to sell on rallies due to the index trading below key moving averages.
- The technology-driven trading landscape reveals a short build-up in Nifty Bank futures, signified by an increase in open interest, which could potentially lead to a sharper decline if support levels of 55,125 and 54,729 are breached.
- As for investors interesting in subscription-based financial services, the Nifty 50 index, with its mixed signals, may offer opportunities for range-bound behavior or short-term consolidation in the near term, particularly within the range of 23,900 and 24,850.
