The Nifty traded in a narrow 73-point range on Thursday and ended the session marginally higher amid subdued movement. The index stood at 24,627.95 at 3:15 pm, while the final closing price under the new Closing Auction Session (CAS) was 24,636. The gap between the provisional and final close has narrowed compared with the initial sessions, suggesting that price discovery under the new mechanism is gradually becoming more stable.
Back-to-Back Inside Candle
On the daily chart, the index formed a doji-like candlestick, reflecting indecision. More importantly, the entire price action remained within the previous session's range, resulting in a second consecutive inside bar.
This comes after the sharp upmove seen on August 3, 2026, and points to a phase of consolidation rather than an immediate change in trend. Broader market breadth remained slightly negative, while the Nifty breadth was weaker, with 34 constituents closing in the red.
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Despite the subdued breadth, the back-to-back inside bars have not yet produced any clear signs of trend deterioration. The index continues to hold above its recent breakout zone, keeping the broader structure intact.
Key Support Levels to Watch for Nifty
Immediate support is placed at 24,476, which coincides with the 8-day EMA, followed by the current week's low of 24,427. A weekly close below 24,427 would weaken the setup and could drag the index towards 24,328. In a deeper correction, 24,190 would become the next important support.
200-DMA Remains the Key Hurdle
On the upside, the Nifty needs to sustain above the 24,677-24,704 zone for momentum to improve. A move above this band could help the index reclaim the 200-DMA, currently placed near 24,767.
A weekly close above the 200-DMA would strengthen the technical structure and could open the way towards 24,850-24,990 in the near term. The 14-period RSI continues to hold in the bullish zone, while the MACD histogram shows only a marginal easing in momentum as the index remains range-bound.
Stock to Watch: State Bank of India (SBI)
State Bank of India has broken out of an eight-week tight consolidation base and retraced nearly 50% of its previous decline. The breakout was accompanied by a strong bullish candle and above-average volumes, indicating a pickup in buying interest. The stock is also trading above all key moving averages, while the rising Relative Strength line points to improving performance compared with the broader market.
Momentum indicators remain supportive. The Bollinger Bands have started expanding after a prolonged contraction, suggesting that volatility may increase following the recent consolidation. The moving-average ribbon continues to slope upward, while both the daily and weekly MACD have generated fresh bullish signals. The weekly RSI is approaching the bullish zone, and the daily 14-period RSI has already moved into positive territory.
The technical setup remains favourable as long as the stock holds above its key support levels. A sustained move above Rs 1,085 could push SBI towards Rs 1,144. Traders may maintain a stop-loss at Rs 1,022. A decisive breakout above Rs 1,144 could open the way towards the Rs 1,200 level.
However, SBI is scheduled to announce its quarterly earnings on August 7, 2026. Traders should factor in the possibility of higher volatility around the results and manage position size and risk accordingly.
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