Market Wrap

The session on 6 February unfolded in a narrow range, mirroring the cautious mood across global equities. After a slightly weak start, the Nifty slipped under early selling pressure but spent most of the day oscillating within a tight band. The index eventually formed an inside-bar pattern and settled near 25,648, down 0.52%, highlighting indecision among traders.

Broader markets also witnessed mild profit booking. IT stocks were the primary drag, tracking sharp overnight weakness in global tech counters, particularly in the US. Concerns over stretched valuations in global technology names and uncertainty around the timing of future rate cuts dented sentiment.

On the flip side, Pharma stocks emerged as a pocket of strength. In an otherwise cautious tape, investors gravitated toward defensives, providing relative support to the market amid fragile global cues. The overnight selloff in US markets, especially the heavy fall in the NASDAQ, kept risk appetite in check throughout the session.

What's Ahead

With Nifty forming an inside-bar structure, the market appears poised for a range-bound phase unless a clear breakout or breakdown unfolds. Global signals - particularly movements in US tech stocks and bond yields - will remain crucial sentiment drivers.

Domestically, stock-specific action driven by earnings reactions is likely to dominate. Continued resilience in defensive pockets like Pharma could offer stability if volatility persists, while IT may remain sensitive to global tech sentiment.

Institutional Activity

Market Snapshots

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 slipped 133.20 points to close at 25,642.80, forming an inside-bar structure after recent advances, indicating consolidation amid profit booking at higher levels. The index traded within a tight intraday range (25,579–25,757) as weak global cues and sectoral pressure from IT, telecom, and metals overshadowed selective strength in consumption and healthcare. Momentum indicators softened, with RSI easing toward the 50 mark, suggesting waning bullish momentum without a clear reversal signal yet. Market breadth remained negative (18 advances vs 32 declines), reflecting underlying caution. Technically, the index now approaches a crucial inflection zone where 25,211 and 24,953 act as immediate supports, while any pullback toward 26,046 and 26,304 may face resistance unless fresh buying interest emerges.

Bank Nifty

NIFTY BANK ended lower by 174.50 points at 60,063.65 after early weakness dragged the index near intraday lows before stabilisation. Selling in heavyweight private lenders offset gains in PSU banks, keeping the index under pressure despite limited volatility. The RSI cooled slightly to hover near 55, indicating mild loss of upward momentum but not a decisive trend reversal. The index’s inability to sustain above the 60,300 zone highlights supply at higher levels. Immediate support is placed at 59,127 and 58,548, while on the upside, 61,000 and 61,579 remain key hurdles that must be crossed for the bullish momentum to resume.

Nifty Financial Services

The NIFTY FINANCIAL SERVICES index declined 113.20 points to 27,689.35 as weakness in select financial heavyweights and NBFCs overshadowed gains in insurance and PSU-linked counters. Broader participation remained weak (6 advances vs 14 declines), reflecting cautious positioning within the financial pack. Technically, the index is witnessing consolidation after a recent upmove, with price action suggesting hesitation near higher levels. Support is seen at 27,237 and 26,959, which are critical to prevent deeper retracement, while 28,137 and 28,416 act as resistance zones where selling pressure may re-emerge.

Sensex

The BSE SENSEX fell 503.76 points to close at 83,313.93 amid broad-based selling across IT, banking, FMCG, and telecom stocks, with market breadth heavily skewed toward declines (4 advances vs 26 declines). The index struggled to find buying support throughout the session, reflecting profit booking after recent gains and lack of fresh triggers. Technically, the index is entering a consolidation phase near higher levels, with momentum cooling but not yet reversing decisively. Immediate supports lie at 81,934 and 81,062, while resistance is seen at 84,753 and 85,625, which will likely cap near-term upside unless sentiment improves.