Market Report: Indian Equity Indices Performance on February 6, 2025

 Overview: The Indian equity indices closed on a negative note on February 6, with the Nifty settling at 23,603.35 and the Sensex at 78,058.16. The markets witnessed intraday profit booking at higher levels, leading to a decline of 92.95 points (0.39%) in the Nifty and 213.12 points (0.27%) in the Sensex.

Market Performance: Despite a strong opening, the indices faced selling pressure at higher levels. The Nifty formed a bearish candle on the daily chart near the 50-day Simple Moving Average (SMA), signaling potential weakness. While the short-term market outlook remains positive, sustained trading below the 23,500/77,800 level could make the uptrend vulnerable.

Key Levels:

• Support Level: 23,520

• Resistance Level: 23,800

• If the market sustains above 23,500/77,800, it may witness a bounce-back towards 23,750-23,800/78,500-78,600.

• A break below 23,500 may trigger further downside momentum.

Sectoral Performance:

• Gainers: Pharma and IT sectors showed resilience, witnessing buying interest at lower levels.

• Losers: The real estate and capital market indices shed over 2%, with rate-sensitive sectors like banking, auto, and FMCG also experiencing selling pressure.

• Sectoral Decline: Auto, FMCG, Realty, and Consumer Durables fell between 1-2%, while Metal, PSU Bank, Energy, Media, and Oil & Gas declined by 0.4-0.8%.

Broader Market Performance:

• The Nifty Midcap index fell by 1.2%, indicating profit booking.

• The Smallcap index, however, remained relatively stable, mirroring the movement of Nifty50.

Top Gainers and Losers:

• Top Gainers: Cipla, Adani Ports, Infosys, Dr. Reddy's Labs, Tata Consumer.

• Top Losers: Trent, Bharat Electronics, Bharti Airtel, Titan Company, NTPC.

Market Sentiment & Key Takeaways:

• Investors booked profits in rate-sensitive sectors ahead of the monetary policy announcement.

• The 50DMA acted as a strong resistance level, limiting further gains.

• If the RBI announces a surprise rate cut, it may boost short-term optimism in the market.

• A break above 23,800 is necessary to confirm the continuation of the uptrend.

Conclusion: The market remains in a consolidation phase, with crucial support at 23,520. The upcoming monetary policy decision is expected to play a significant role in determining the market’s near-term direction. Investors should keep a close watch on key levels and sectoral movements for further cues.