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Informist, Thursday, Aug. 6, 2026

 

By Gopika Balasubramanium

 

MUMBAI – The underlying trend in the Indian equity market continues to be bullish on the back of slightly better earnings for the June quarter and positive comments from managements, a stable rupee, and revival of enthusiasm among foreign investors for domestic equities. Friday, headline indices are expected to remain in a thin range. While some analysts think the upside for the headline indices is not substantial in the near term, the small- and mid-cap indices are expected to see gains on the back of strong corporate earnings despite lingering risks like higher input costs due to the war in West Asia.

 

"I do not see Nifty 50 go beyond 25100-25200 points by August-end," a senior technical and derivatives analyst with a domestic brokerage said. "As for the closing auction session, the liquidity in our market is very thin, which affects the price discovery, with time it should become adjusted," he added. "It is the demand-supply mismatch which creates an imbalance at the end of trading, one day there would be more buyers, another day the number of sellers would be more," he said.

 

"The arbitrage funds would also try to take some advantage during the auction, but it is too early to say, it should take some time to get clarity," he added. Further, the market regulator is gathering data from different brokerages on clients that placed huge orders during the closing auction, the analyst said. 

 

For day traders, 24700 points should be the immediate resistance, above which the Nifty 50 index is seen moving to 24800 points, Shrikant Chouhan, head of equity research at Kotak Securities, said. On the flip side, below 24600 points, the index could see intraday price corrections to 24500-24450 points. "The intraday market texture is non-directional; hence, level-based trading would be the ideal strategy for day traders," the analyst said. 

 

Thursday, the Nifty 50 ended at 24636 points, up 11.35 points. The Nifty 50 August futures contract ended at a premium of over 100 points to the spot index. The current-month futures contract had ended at a premium of 23 points Wednesday and at a discount on the previous two sessions. Last-minute volatility in the index has eased significantly, with the gap between the end of continuous trading and its closing level narrowing Thursday. The BSE Sensex closed at 78954.76 points, up 373.76 points or 0.5%. However, the Sensex August futures contract ended at a premium of 205 points over the spot.  End 

 

Edited by Shubhayan Bhattacharya

 

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