Indian Equity Market Report & Trading Tips For – February 6, 2025

 Market Overview: Indian equity indices ended on a negative note on February 5, with the Nifty slipping below the 23,700 mark. The Sensex declined by 312.53 points (0.40%) to close at 78,271.28, while the Nifty ended 42.95 points (0.18%) lower at 23,696.30. Despite an initial uptick, markets remained range-bound throughout the session before settling slightly lower.

Sectoral Performance:

• Gainers: The metals and energy sectors registered decent gains, contributing positively to the market.

• Losers: Realty and FMCG sectors were under pressure, with the Realty index shedding over 2%.

• Broader Market Performance: The mid and small-cap indices outperformed, posting gains ranging from 0.7% to 1.85%. The Capital Market index was the top gainer, rallying over 4%.

  Indian Equity Market Report – February 5, 2025

Technical Analysis:

• The Nifty index faced resistance around the 23,800 level, where a Falling Wedge pattern and the 50DMA acted as key levels.

• Support is placed at 23,500, with additional key levels at 23,600/78,000 and 23,500/77,700.

• Resistance zones are identified at 23,800-23,900/78,700-78,900.

• The formation of a small bearish candle on daily charts suggests a continuation of non-directional momentum.

Market Outlook:

• Short-Term Trend: The market remains in a consolidation phase after its recent surge. However, as long as Nifty remains above 23,400, the broader trend remains positive.

• Upside Potential: If the index breaks above the 23,800 resistance, it could move towards the 24,050 level in the near term.

• Investor Strategy: Traders are advised to adopt a levels-based approach for intraday trading. The market is still a “buy on dips” scenario, with stock selection playing a crucial role.

• Key Risks: Global uncertainties, rupee depreciation, and ongoing tariff concerns could impact market sentiment despite domestic economic optimism.

Conclusion: The Indian equity market witnessed a narrow-range trading session with mixed sectoral performance. Broader indices showed resilience, while large-cap stocks benefited from valuation moderation. Going forward, traders should closely monitor key support and resistance levels, while investors may consider accumulating fundamentally strong stocks during dips. The overall market outlook remains cautiously bullish, with a potential for upward movement if resistance levels are breached.