Nifty 50, Sensex today: What to expect from Indian stock market in trade on February 6

The trends on Gift Nifty indicate a mildly positive start for the Indian benchmark index. The Gift Nifty was trading around 21,810 level as compared to the Nifty futures’ previous close of 21,787.

The domestic equity indices succumbed to last-hour selling on Monday and ended the volatile session lower with Nifty 50 dropping below 21,800 level.

The Sensex fell 354.21 points to close at 71,731.42, while the Nifty 50 ended 82.10 points, or 0.38%, lower at 21,771.70.

Nifty 50 formed a reasonable negative candle on the daily chart that has engulfed the small body of Friday’s positive candle. This is signaling a formation of a bearish engulfing pattern, but not a classical one.

Also Read: Indian stock market: 8 key things that changed for market overnight – Gift Nifty, China’s trading curbs to bond yields

“Smaller degree higher tops and bottoms continued in Nifty on the daily chart and current weakness could be in line with the new higher bottom formation for the market. The selling pressure that started from the new all-time high of 22,126 has extended on Monday and the market is now showing volatility at the highs,” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.

However, he believes the present weakness is unlikely to damage the near-term uptrend status of the market and one may expect chances of upside bounce from the lower levels.

Nifty Open Interest Data

On the call side, the highest Open Interest (OI) was observed at 22,000 followed by 22,100 strike prices while on the put side, the highest OI was at 21,500 strike price, noted Deven Mehata, Research Analyst at Choice Broking.

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Here’s what to expect from Nifty 50 and Bank Nifty today:

Nifty 50 Prediction

Nifty 50 ended Monday’s volatile session with a loss of 82 points as it succumbed to last-hour selling.

“The Nifty index has formed a double top pattern on the daily chart, signaling a potential cautionary stance for traders. The resistance level is identified at 22,200, and a decisive break above this on a closing basis could invalidate the bearish outlook. Conversely, the support for the index is situated at 21,650, coinciding with its 20-DMA (20-day moving average),” said Kunal Shah, Senior Technical & Derivative Analyst, LKP Securities.

According to Shah, a breach below this support level might intensify selling pressure in the market.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — February 6

Bank Nifty Prediction

The Bank Nifty index witnessed selling pressure and declined 145 points to close at 45,826 on Monday.

“The Bank Nifty index is currently in bearish territory, encountering formidable resistance at 46,500. The index’s immediate support is positioned at 45,400, and a breach below this level is anticipated to trigger additional selling pressure,” Shah said.

The index persists in a “sell on rise” mode unless it convincingly surpasses the 46,500 mark on a closing basis, he added.

Shrey Jain, Founder and CEO, SAS Online – a deep discount broker – believes that the Bank Nifty’s overall trend seems sideways, with consolidation likely between 45,000 and 47,000. 

“This consolidation phase is expected to persist until a definitive close emerges, providing clarity on market direction,” Jain said.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Published: 06 Feb 2024, 07:33 AM IST