Trade Setup for August 5: Top 15 things to know before the opening bell- Grow Mudra

Trade Setup for August 5: Top 15 things to know before the opening bell

05 Aug , 2026 By : Debdeep Gupta

The Nifty 50 retreated after four consecutive sessions of gains, closing 0.64 percent lower on August 4 amid profit booking and consolidation. Despite the decline, the overall trend remains strong, as the index continued to trade well above all key moving averages, supported by improving momentum indicators, subdued crude oil prices, and a favourable India VIX. As long as the index remains below Monday's high of 24,744, the consolidation phase is likely to continue, with immediate support placed in the 24,500-24,400 zone. However, the index needs to reclaim and sustain above the 24,744 hurdle to trigger a sharp upmove toward the 25,000-25,150 zone, which marks the bearish gap area formed on March 2, 2026, according to experts.

Here are 15 data points we have collated to help you spot profitable trades:

1) Key Levels For The Nifty 50 (24,615)

Resistance based on pivot points: 24,688, 24,753, and 24,858

Support based on pivot points: 24,477, 24,412, and 24,306

Special Formation: The Nifty 50 formed a small bearish candle with a long lower shadow on the daily timeframe, indicating that buying interest emerged at lower levels. The index continued to trade well above all key moving averages, with the short- and medium-term moving averages trending northward, reflecting a strong broader market structure. It also remained above the downward-sloping trendline, which had acted as a resistance line a few sessions ago. The Relative Strength Index (RSI) fell to 61.77 but continued to hold above its reference line. The Moving Average Convergence Divergence (MACD) continued to trend upward after a bullish crossover, while the histogram's green bars expanded for the third consecutive session. Overall, these technical indicators suggest that the broader trend remains positive, with buying interest intact despite the recent bout of profit booking and consolidation.

2) Key Levels For The Bank Nifty (57,907)

Resistance based on pivot points: 58,050, 58,219, and 58,493

Support based on pivot points: 57,503, 57,334, and 57,060

Resistance based on Fibonacci retracement: 59,247, 61,787

Support based on Fibonacci retracement: 57,305, 56,441

Special Formation: The Bank Nifty fell 0.6 percent on profit booking and formed a Nifty-like candlestick pattern on the daily charts. Despite the decline, the overall trend remains in favour of the bulls, as the banking index continued to trade well above all key moving averages, with the short-term moving averages trending upward. The index also held above the 23.6 percent Fibonacci retracement level of the rally from the May low to the June high. The RSI declined to 55.25 but continued to hold above its signal line. The MACD is on the verge of a bullish crossover, while the histogram's red bars indicate that bearish momentum is gradually weakening. Overall, these technical indicators suggest that the broader trend remains positive despite the recent bout of profit booking, with the underlying bullish structure still intact. A bullish MACD crossover, if confirmed, could further strengthen the positive momentum.

3) Nifty Call Options Data

According to the weekly options data, the 24,600 strike holds the maximum Call open interest (with 64.12 lakh contracts). This level can act as a key level for the Nifty in the short term. It was followed by the 25,000 strike (62.18 lakh contracts) and 24,800 strike (52.06 lakh contracts).

Maximum Call writing was observed at the 24,600 strike, which saw an addition of 36.03 lakh contracts, followed by the 24,800 and 24,500 strikes, which added 30.58 lakh and 28.5 lakh contracts, respectively. The maximum Call unwinding was seen at the 24,200 strike, which shed 1.78 lakh contracts.

4) Nifty Put Options Data

On the Put side, the maximum Put open interest was seen at the 24,500 strike (with 38.78 lakh contracts), which can act as a key support level for the Nifty in the short term. It was followed by the 24,200 strike (31.04 lakh contracts) and the 24,400 strike (30.94 lakh contracts).

The maximum Put writing was placed at the 24,500 strike, which saw an addition of 12.82 lakh contracts, followed by the 24,100 and 24,400 strikes, which added 9.85 lakh and 8.11 lakh contracts, respectively. The maximum Put unwinding was seen at the 24,350 strike, which shed 66,950 contracts.

5) Bank Nifty Call Options Data

According to the monthly options data, the 58,000 strike holds the maximum Call open interest, with 23.14 lakh contracts. This can act as a key level for the index in the short term. It was followed by the 57,000 strike (6.58 lakh contracts) and the 57,500 strike (6.55 lakh contracts).

Maximum Call writing was observed at the 57,500 strike (with the addition of 1.23 lakh contracts), followed by the 58,500 strike (96,630 contracts) and 58,000 strike (96,210 contracts). The maximum Call unwinding was seen at the 57,000 strike, which shed 37,080 contracts, followed by the 57,300 and 57,100 strikes, which shed 7,680 and 6,960 contracts, respectively.

6) Bank Nifty Put Options Data

On the Put side, the maximum Put open interest was seen at the 58,000 strike (with 15.68 lakh contracts), which can act as a key level for the index in the short term. This was followed by the 57,000 strike (9.24 lakh contracts) and the 57,500 strike (4.58 lakh contracts).

The maximum Put writing was placed at the 58,500 strike (which added 43,620 contracts), followed by the 58,300 strike (22,080 contracts) and 57,700 strike (17,580 contracts). The maximum Put unwinding was seen at the 57,500 strike, which shed 63,360 contracts, followed by the 57,800 and 56,800 strikes, which shed 18,570 and 10,110 contracts, respectively.

7) Funds Flow (Rs crore)

8) Put-Call Ratio

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, fell to 0.99 on August 4, from 1.4 compared to previous session.

The increasing PCR, or being higher than 0.7 or surpassing 1, means traders are selling more Put options than Call options, which generally indicates the firming up of a bullish sentiment in the market. If the ratio falls below 0.7 or moves towards 0.5, then it indicates selling in Calls is higher than selling in Puts, reflecting a bearish mood in the market.

9) India VIX

The India VIX, which measures expected market volatility, extended its uptrend for another session, rising 2.22 percent to 12.19. However, it continued to trade below all key moving averages and remained well below alarming levels. As long as the India VIX sustains below the 14-15 zone, the bullish market structure is unlikely to face any major risk.

10) Long Build-up (40 Stocks)

A long build-up was seen in 40 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.

11) Long Unwinding (51 Stocks)

51 stocks saw a decline in open interest (OI) along with a fall in price, indicating long unwinding.

12) Short Build-up (71 Stocks)

71 stocks saw an increase in OI along with a fall in price, indicating a build-up of short positions.

13) Short-Covering (47 Stocks)

47 stocks saw short-covering, meaning a decrease in OI, along with a price increase.

14) High Delivery Trades

Here are the stocks that saw a high share of delivery trades. A high share of delivery reflects investing (as opposed to trading) interest in a stock.