Stock Market Outlook Today, 5 August 2026: Sensex, Nifty Likely to Trade Cautiously; RBI To Announce Repo Rate

Indian stock markets are expected to trade with a cautious-to-positive bias on Wednesday, August 5, 2026, as investors are likely to remain watchful amid the Reserve Bank of India's (RBI) monetary policy decision, with analysts expecting the central bank to keep the repo rate unchanged.

Stock Market Outlook Today, 5 August 2026: Sensex, Nifty Prediction as RBI Announces Repo Rate Decision

Apart from the RBI's policy outcome, market participants will also monitor the latest US jobs data and Composite and Services Purchasing Managers' Index (PMI) readings from the United Kingdom and the United States for fresh global cues.

On Tuesday, Indian equity benchmarks ended lower after a volatile trading session. The BSE Sensex declined 210.08 points, or 0.27%, to settle at 78,428.95, while the NSE Nifty 50 dropped 159.40 points, or 0.64%, to close at 24,614.90. Market breadth remained largely balanced, with 2,030 stocks advancing, 2,037 declining and 174 remaining unchanged.

"Indian equities are expected to witness a gradual upmove, aided by supportive global cues, healthy domestic macroeconomic indicators, and encouraging corporate earnings. Investors will closely track the US jobs data later today, followed by the RBI's monetary policy decision tomorrow, and the UK and US Composite and Services PM," said Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Nifty Prediction Today, 5 August 2026: Buy-on-Dips Strategy Continues

According to Anand Rathi, the broader technical structure of the Nifty remains constructive despite Tuesday's sharp intraday swings. The brokerage noted that after ending the previous session near the 24,775 level, the benchmark index opened with a gap-down and remained under selling pressure for most of the trading day, slipping close to the 24,400 mark.

However, strong buying during the final minutes of trade helped the index recover a significant portion of its losses and close near 24,600. Analysts believe the late-session recovery indicates that buying interest continues to emerge at lower levels, keeping the broader uptrend intact despite recent volatility.

According to the brokerage, the immediate support zone for the Nifty has shifted higher to the 24,400-24,300 range, while the index is still expected to gradually move towards the 25,000 mark and beyond over the coming sessions.

The brokerage continues to maintain a bullish "buy on dips" approach for the benchmark index.

Bank Nifty Outlook: Break Above 58,600 Could Trigger Fresh Rally

Anand Rathi believes Bank Nifty continues to consolidate just below an important resistance zone between 58,500 and 58,600, where the index has repeatedly faced selling pressure in recent sessions.

According to the brokerage, a decisive breakout above 58,600 could pave the way for a fresh rally towards the psychologically significant 60,000 level.

"Bank Nifty continues to consolidate near the 58,500-58,600 resistance zone, where multiple tops have been formed over the past few sessions. A decisive breakout above this hurdle is likely to trigger a fresh leg of the rally towards the 60,000 mark. Hence, traders can consider fresh long positions only above 58,600. On the downside, the 57,300-57,000 zone is expected to act as a strong support for the coming sessions," stated Anand Rathi's report.

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