Market wrap up(DWM,T,N,E):The benchmark Nifty 50 saw some selling pressure on August 5 after a day of rally, falling 73 points amid caution ahead of the RBI monetary policy meeting outcome due on August 6. The lower highs-lower lows formation remains intact, along with bearish momentum indicators, and the index continued to trade below both short- and medium-term moving averages. Hence, if the index decisively breaks the 24,500 zone, which coincides with the previous week’s low as well as the June low, the selling pressure may extend further. However, on the higher side, the 24,800–24,900 levels are crucial to watch, according to experts. The Nifty 50 formed a bearish candle with a lower shadow on the daily charts, indicating an erosion of some of the previous day’s gains. The index defended the 100-day EMA for another session but still traded below the 20-day and 50-day EMAs, continuing its lower highs-lower lows structure. The MACD remained below the zero line, though the weakness in the histogram faded for another session. The RSI stood at 40.01, while the Stochastic RSI maintained a bearish crossover. All these factors indicate continued weakness. The Bank Nifty also continued to trade below its 20-day and 50-day EMAs, though it held well above the 100-day EMA. The 10-day EMA crossed below the 50-day EMA, further confirming the bearish setup. The index formed a bearish candle with upper and lower shadows on the daily timeframe, continuing the lower tops-lower bottoms formation, which signals weakness. The MACD remained below the zero line with a bearish histogram, while the RSI dropped to 35.75, with a bearish crossover. All these indicators point toward persistent bearish sentiment.
