Stock Market Prediction for Tomorrow, Monday 3 August 2026: Wall Street Rally Meets RBI Verdict Week

Traders searching for a stock market prediction for tomorrow should start with Wall Street rather than Dalal Street: Thursday's 2.78 percent Nasdaq surge on a Microsoft led rally is the single biggest overnight input feeding into Monday's open. Domestically, the Nifty 50 finished the week at 24,383.60, the Sensex at 78,094.64 and the Bank Nifty at 57,264.85, each posting modest Friday gains that capped a five session recovery from the 23,606 low struck on 24 July. That backdrop shapes a clearly two sided stock market prediction for tomorrow rather than a one way call.

Ankit Jaiswal, Senior Research Analyst at Univest, and Kunal Singla, Associate Director, have put together this stock market prediction for tomorrow over the weekend using Friday's closing prices, moving averages, options positioning and the fresh macro calendar for the week ahead. Ankit Jaiswal walks through the Nifty 50 and Sensex technical picture, and Kunal Singla unpacks what the Bank Nifty's weaker momentum and the RBI's policy meeting mean for positioning into Monday.

Overnight and Global Cues Shaping the Stock Market Prediction for Tomorrow

• Wall Street staged a forceful Thursday rebound: the Nasdaq jumped 2.78 percent to 25,122.18, the S&P 500 gained 1.66 percent to 7,437.63 and the Dow rose 1.19 percent to 52,208.06, a day after a Fed driven selloff had knocked the Dow down more than two percent.
• Brent crude settled at 89.03 dollars a barrel, down 1.88 percent, having earlier spiked past 93 dollars intraday on fresh Iran related strikes, while Gift Nifty August futures traded near 24,422 on Friday morning.
• Friday night's US session and any weekend developments in West Asia are the two swing factors that will move Gift Nifty before Monday's 9:15 am bell, a point every stock market prediction for tomorrow needs to flag.

Friday's Close: The Base for the Stock Market Prediction for Tomorrow

Index	Close	Change	14 Day RSI
Nifty 50	24,383.60	+0.27%	54.75
Sensex	78,094.64	+0.21%	53.57
Bank Nifty	57,264.85	+0.21%	41.52

The RSI column is the detail Ankit Jaiswal keeps returning to in this stock market prediction for tomorrow: the Nifty 50 and Sensex both sit in neutral to mildly bullish territory, while the Bank Nifty's 41.52 reading is closer to oversold than overbought. That gap, more than the headline index moves, is what will decide whether Monday's session broadens out or stays narrowly led by autos and select heavyweights.

Nifty 50 and Bank Nifty Levels for Tomorrow

Nifty 50 support sits at 24,300 and then 24,150, with resistance at 24,430 and 24,530, the zone that capped the index on 6 and 7 July. Ankit Jaiswal's stock market prediction for tomorrow treats a close above 24,430 as the signal that would open a fresh run toward 24,530. Bank Nifty carries a heavier ceiling: Kunal Singla flags 57,450, close to the index's 200 day moving average, as the level that needs to break before the banking gauge can be called truly constructive, with support at 57,000 underneath, a divergence this stock market prediction for tomorrow keeps front and centre.

Sectors and Stocks to Track in the Stock Market Prediction for Tomorrow

Sector rotation is the story underneath tomorrow's headline numbers, and every stock market prediction for tomorrow this week has to account for it.

• Auto led: Nifty Auto rose 1.64 percent as Mahindra and Mahindra jumped 3.5 percent to Rs 3,398.50, the sector's clearest source of momentum heading into tomorrow.
• IT lagged: Nifty IT fell 1.56 percent as TCS dropped 2.72 percent and Infosys lost 2.16 percent, a divergence from Wall Street's tech rally worth watching for a bounce.
• Banking split: HDFC Bank slipped 0.77 percent while ICICI Bank and State Bank of India stayed marginally positive, underlining the uneven picture behind Bank Nifty's headline gain.

RBI Policy Week: The Dominant Trigger for the Stock Market Prediction for Tomorrow

The RBI Monetary Policy Committee opens its three day meeting tomorrow, with the rate verdict due Wednesday, 5 August. The repo rate has held at 5.25 percent through three straight reviews, and consensus expects another pause, though Kunal Singla notes that any shift in commentary on liquidity or inflation could move rate sensitive stocks well before the formal announcement. A stock market prediction for tomorrow that ignores this event risks missing the week's biggest single catalyst.

Trading Strategy for Tomorrow's Session

• Treat 24,300 on the Nifty 50 as the line that separates a constructive tomorrow from a defensive one, the core level in this stock market prediction for tomorrow.
• Size new positions conservatively into Wednesday's RBI verdict rather than committing fully on Monday itself, a caution central to this stock market prediction for tomorrow.
• Watch Bank Nifty's reaction independently of the Nifty 50, since the RSI gap suggests the two may not move together this week.
• Keep stop losses tight below the day's support levels given the Nifty weekly expiry falls just one session later, on Tuesday.

What Sentiment Signals Say About the Stock Market Prediction for Tomorrow

India VIX closed Friday at 11.76, down 3.29 percent, one of its calmest readings in weeks, and Ankit Jaiswal reads that as the options market pricing a fairly orderly week rather than a violent swing around the RBI verdict. FIIs added a net Rs 3,623.50 crore to the cash segment on 30 July, extending the buying that has powered the recovery off the 24 July low, while DIIs booked Rs 1,864.03 crore of net sales the same session, consistent with domestic funds trimming into FII led strength rather than turning cautious themselves.

Kunal Singla's read for this stock market prediction for tomorrow is that low volatility ahead of a major policy event cuts both ways: it supports a steady grind toward resistance if the RBI delivers no surprises, but it also means the market has limited cushion if Wednesday's tone runs hotter than expected. That asymmetry is why both analysts are treating Monday as a session to build the week's framework rather than to chase a breakout.

Risks to Watch Before Tomorrow's Open

• A hawkish tilt from the RBI, even without a rate change, could unsettle rate sensitive stocks from the opening bell onward, the top risk to this stock market prediction for tomorrow.
• A weekend escalation in the Iran-US standoff could push Brent back above 90 dollars and dent sentiment before the market opens.
• A reversal in Thursday's Wall Street gains once US markets trade Friday night could flip Gift Nifty's current mild positive lean.
• Persistent IT sector weakness could continue to offset strength elsewhere in the index, capping the upside in this stock market prediction for tomorrow.

Conclusion

This stock market prediction for tomorrow, Monday 3 August 2026, leans constructive but not complacent, with the Nifty 50 likely to test 24,430 to 24,530 while the RBI policy week plays out in the background. Ankit Jaiswal and Kunal Singla agree that calm volatility and steady FII buying support the bullish case, while Bank Nifty's weaker RSI and the looming rate verdict argue for measured position sizing rather than an aggressive push. A close above 24,430 would strengthen this stock market prediction for tomorrow, while a slip below 24,300 would shift the tone defensive.

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What is the stock market prediction for tomorrow, Monday 3 August 2026?

Ans. The stock market prediction for tomorrow is constructive but measured, with the Nifty 50 expected to test 24,430 to 24,530 resistance while the RBI Monetary Policy Committee's three day meeting begins the same day.

How did Wall Street perform ahead of tomorrow's session?

Ans. The Nasdaq surged 2.78 percent and the S&P 500 gained 1.66 percent on Thursday, led by Microsoft, a day after a Fed driven selloff. That overnight strength is a supportive input into tomorrow's Gift Nifty open.

What is the Nifty 50 support and resistance for tomorrow?

Ans. Support is at 24,300 and then 24,150. Resistance is at 24,430 and then 24,530, based on Friday's close of 24,383.60.

Why is Bank Nifty weaker than the Nifty 50 heading into tomorrow?

Ans. Bank Nifty's 14 day RSI stood at 41.52 on Friday versus 54.75 for the Nifty 50, reflecting two weeks of relative underperformance driven largely by HDFC Bank's 0.77 percent decline.

What does the RBI MPC meeting mean for tomorrow's session?

Ans. The RBI Monetary Policy Committee begins meeting tomorrow, 3 August, with the rate decision due Wednesday. The repo rate has held at 5.25 percent for three reviews, and any shift in tone could move rate sensitive stocks early in the week.

Which sectors are analysts watching for tomorrow?

Ans. Auto led Friday's gains on a 3.5 percent rally in Mahindra and Mahindra, while IT was the weakest sector as TCS and Infosys both fell more than 2 percent, a divergence from the overnight Nasdaq rally.

Is there an F&O expiry tomorrow?

Ans. No. Monday carries no index expiry. The Nifty 50 weekly expiry falls on Tuesday, 4 August, and the Sensex weekly expiry falls on Thursday, 6 August.

Should traders build large positions ahead of the RBI verdict?

Ans. Univest analysts suggest sizing new positions conservatively into Wednesday's RBI decision and recommend consulting a SEBI-registered financial advisor before making investment decisions.