Stock Market Update: Flat-to-Cautious Start Likely as Nifty Trades in a Tight Range

Indian equity markets are expected to open on a subdued note on Thursday, February 5, as investors remain cautious amid weak global cues and a lack of immediate domestic triggers. GIFT Nifty was trading at 25,858, just 10 points above its previous Nifty futures close.

In the previous session, domestic benchmarks ended slightly higher despite sharp intraday swings. Sensex closed at 83,817.69 with a 0.09% increase, while the Nifty 50 reached 25,776 after gaining 0.19%. 

While the Nifty Midcap index increased approximately 0.6% and, the Smallcap index showed over 1% growth.

Sensex Outlook

Sensex shows consolidation as it fails to break through the resistance level, resulting in minimal movement. 

The 83,900-84,000 zone remains a key hurdle aligned with the 50-day moving average. A strong breakout above this level could send the index to 84,200-84,500. 

The immediate support is at 83,100, while a break below this level will lead to a decline towards 82,800- 82,500.

Nifty 50 Outlook

Nifty 50 formed a small positive candle on its daily chart, showing the market held steady at its lower price range, although upside remains capped.

Derivatives data show significant put writing at the 25,800 strike, a strong support level, while a significant resistance at the 26,000 strike with heavy call writing.

The immediate support is at 25,600; a break above the 25,850-25,900 range will lead to upward momentum toward 26,000-26,350.

Bank Nifty Outlook

Bank Nifty index closed yesterday at 60,238 with a 0.33% increase. The index remains above key moving averages, suggesting a positive trend despite short-term market consolidation.

The 58,800-59,000 is seen as a strong support, which has held firm across multiple sessions. The 60,500-60,600 area remains a key resistance on the upside.

A breakout above this level will result in increased price movement reaching toward 61,000-61,300. The price correction will face limitations as support exists at 59,800-59,700.

Also Read: US Stock Market Today: S&P 500 & NASDAQ Slide as AMD Outlook Disappoints and AI Risk Concerns Grow

Sectoral Trends

IT, Metals, Oil, and Gas Shares in Focus. While the Nifty IT index plunged nearly 6% amid concerns that new AI-based automation tools, other sectors provided support. 

Auto, energy, consumer durables, PSU, metals, oil and gas, power and realty stocks posted gains of 1-2%. Consumer durables and oil and gas emerged as top performers, rising 2.7% and 2% respectively. Metals and auto stocks also advanced over 1%.