Technical View: The Indian stock market opened on a positive note on February 5 with mixed global cues, but selling pressure increased in the second half of the day. Nifty tried to maintain its initial gains but eventually closed at 23,696.30 with a decline of 42.95 points. Bank Nifty also showed strength in the beginning and reached above 50,500, but due to profit booking, it finally closed at 50,343.05 with a gain of 0.37 percent. After this volatility in the market, now the eyes of investors and traders are fixed on the business of February 6. So let’s see how will the stock market move tomorrow i.e. on February 6, will there be a big change, or will the situation remain like February 5.
Technical view of Nifty: Downward pressure remains in the market
Let us tell you that there are many factors behind the recent decline in Nifty, including weakness in global markets and instability in sectoral performance. Nifty closed below 23,700 in the previous day’s trading, indicating that short-term pressure remains in the market. If we talk about the sector, FMCG, consumer durables, realty, and auto sectors saw a decline, while metal, energy, media, and PSU bank indices remained strong. The biggest decline in the market was recorded in the shares of Asian Paints, Titan, Nestle India, HUL, and Britannia Industries, while shares of Hindalco, ONGC, Apollo Hospitals, BPCL, and Adani Ports saw good gains.
According to technical analysis, the level of 23,600 remains an important support for Nifty. If Nifty goes below this level, the decline may increase further. On the other hand, the level between 23,800 to 23,900 will act as resistance, that is, if Nifty crosses this zone, the market may see a boom again. Given the current circumstances, a level-based trading strategy may be better for traders, so let us now know whether the movement of Bank Nifty will remain above 50,400 on February 6 or whether any other change will be seen.
Bank Nifty movement: Focus will remain above 50,400
Bank Nifty performed strongly in the beginning on February 5 and reached above 50,500, but it remained volatile in the second half of the day. However, despite this, it closed at the level of 50,343.05, which indicates that the trend of bullishness is maintained in the index. Market experts believe that to maintain strength, it will be necessary for Bank Nifty to cross the level of 50,400. If it remains above this level, then the index can see a rise from 50,800 to 51,000.
According to the technical chart, the level of 50,000 remains an important support for Bank Nifty. If it goes below this level, the weakness in the market may increase and a fall to 49,800 is possible. On the other hand, if the index crosses 50,400, then it may remain strong. Traders need to use stop loss correctly at this time and take big trades only when strong technical signals are received.
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The vigilance of traders is necessary for the market
Currently, the market is witnessing volatility and both Nifty and Bank Nifty are trading in a limited range. Traders will have to keep an eye on global cues and sectoral movements. The level of 23,600 in Nifty and 50,000 in Bank Nifty will be important support, while the possibilities of an uptrend may increase above 23,800 and 50,800. In this uncertain environment, investors and traders need to focus on risk management and take positions to stop losses.
(Disclaimer: This analysis is for information purposes only. Please seek expert advice before investing.)
