Indian equity markets are likely to open higher on February 10, supported by firm global cues and positive signals from the derivatives market. Early trends from GIFT Nifty also point to a strong opening, with the index trading around the 25,990 level with a 75 points premium over the previous close of Nifty futures.
On Monday, benchmark indices extended gains for the second consecutive session. The Sensex rose 485.35 points, or 0.58%, to close at 84,065.75 while the Nifty 50 gained 173.60 points, or 0.68%, to end at 25,867.30.
Broader markets outperformed, the Nifty Midcap index gained 1.58%, while the Smallcap index jumped 2.64%, as investors show renewed participation in higher-beta stocks.
Sectorally, gains were broad-based, with media, realty, consumer durables, PSU banks, metals, pharma, and healthcare stocks rising between 1% and 3%.
Technically, Sensex has moved back above key short-term moving averages, suggesting that the recent corrective phase may be stabilising.
Immediate support is seen at 83,500-83,700 zone. A sustained hold above this zone would keep the near-term bias positive.
On the upside, the 84,400-84,500 remains a critical resistance area. A decisive close above this zone could signal a resumption of the broader uptrend and open the path toward retesting previous all-time highs.
The Nifty 50 despite forming a Doji candle on the daily chart indicates short-term indecision; the broader trend remains constructive.
Derivatives data shows significant put writing at the 25,800, while heavy call writing at the 26,000 strike. The index has also reclaimed its 50-day moving average near 25,795.
Immediate support is placed in the 25,750-25,800 range, while resistance is clustered between 25,950 and 26,000.
A decisive breakout above 26,000 could trigger short covering and potentially propel the index toward the 26,200-26,300 levels.
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The Bank Nifty index closed Monday's session at 60,669.35 with a 548.80 points or 0.91% gain. The index maintained its position above the key moving averages.
Technical indicators indicate controlled strength, with immediate resistance at 60,800-60,900.
The 60,300-60,200 zone serves as a key support level. A sustained breakout above this could open the door towards 61,300 and 61,600.
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