The Nifty 50 index faces a major test after the US-India trade deal news. Experts say the 25,800-26,000 zone remains the biggest hurdle for further gains. Bulls have defended key supports but face tough resistance ahead of Friday’s trade session.
India’s market held steady for a third straight day despite global uncertainty. The Nifty closed just above 25,600 while maintaining its bullish chart pattern. Traders took comfort from the interim US-India trade agreement which removes key tariffs on Indian products.
Technical charts show important levels to watch. On daily charts, the Nifty formed a bullish candle with strong lower support. The index keeps holding above its 20-day, 50-day and 100-day moving averages – a positive sign for traders.
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| Nifty Key Levels | |
|---|---|
| Resistance 1 | 25,711 |
| Resistance 2 | 25,761 |
| Resistance 3 | 25,842 |
| Support 1 | 25,549 |
| Support 2 | 25,499 |
| Support 3 | 25,418 |
Bank Nifty shows similar strength – defending key trendlines while staying above moving averages. Banking stocks could lead Friday’s move with the 60,000 level acting as a key battleground.
Options data provides clues about market expectations. For Nifty:
- Maximum Call open interest at 26,000 strike (1.44 crore contracts)
- Maximum Put open interest at 25,500 strike (1.2 crore contracts)
This suggests traders see 25,500 as strong support and 26,000 as tough resistance. The put-call ratio jumped to 0.96 showing stronger bullish sentiment compared to previous sessions.
Foreign investors turned net sellers in Thursday’s trade while domestic funds bought shares. This continues the recent pattern of DIIs supporting Indian markets during FII selling phases.
| Fund Flow (₹ Crore) | |
|---|---|
| FII Selling | 1,486 |
| DII Buying | 1,246 |
Market volatility keeps falling – the India VIX dropped another 1.87% to 11.94. Lower volatility generally helps bullish traders as it reduces risk of sharp downward moves.
Traders should watch key stocks showing activity:
- 45 stocks had long build-up (rising OI + price)
- 37 stocks saw long unwinding (falling OI + price)
- 82 stocks saw short build-up (rising OI + falling price)
- 47 stocks witnessed short-covering (falling OI + rising price)
High delivery percentage stocks included several FMCG and pharmaceutical companies – suggesting investor interest in defensive sectors. Only Sammaan Capitals remains in the F&O ban list ahead of Friday’s session.
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FAQs: Trade Setup for February 9
What is the Nifty support for Friday?
Immediate support at 25,500 with stronger support at 25,400 levels.
Where is Nifty resistance?
The 25,800-26,000 zone remains critical resistance needing strong volumes to break.
How does US-India trade pact affect markets?
The tariff removals boost export sectors while interim agreement signals stronger economic ties.
Market experts advise caution near resistance levels. While the trend remains positive, fresh buying should wait for either a breakout above 25,800 or a dip towards support zones. Banking stocks will likely lead either upward or downward moves given their weight in indices.
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