Daily Market Outlook 08th February 2026 by FundsIndia
Market Opening View
GIFT Nifty futures for February delivery were trading around 25,930 at 7:30 AM, indicating a gap-up opening for the Nifty today.
Market Recap & Technical Outlook
On Friday, the Nifty opened on a weak note but staged a strong rebound to reclaim the 25,600 level, closing decisively above the 50-day EMA in the final hour on RBI policy day. The index gained 50.90 points to close at 25,693.70, ending the week with a 3.5% gain despite heightened Budget-related volatility.
Buying interest was supported by FMCG stocks, led by ITC, which surged nearly 5% on proposed cigar price hikes and block deals. IT stocks underperformed amid concerns around AI spending and weakness in TCS and Tech Mahindra. Market volatility cooled sharply, with India VIX falling 20% for the week.
The RBI MPC unanimously held the repo rate unchanged at 5.25%, marking the third pause in four meetings, while maintaining a neutral stance.
Technical View
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The index formed a bullish candlestick pattern on the daily chart.
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India VIX closed below 12, indicating easing near-term volatility.
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The short-term trend remains bullish, with downside risk emerging only below 25,450.
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The 9-day SMA is placed at 25,426.
Global Market Snapshot
U.S. markets rebounded sharply on Friday, led by strong gains in the Dow Jones, which crossed the 50,000 mark for the first time, supported by bargain hunting and improved consumer confidence data.
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Dow Jones: Up 1,206 points to 50,115.67
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S&P 500: Up 133 points to 6,932.30
Derivatives Snapshot
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Futures: FIIs increased long positions by 1,160 contracts and added 7,388 short contracts, remaining net bearish by 6,228 contracts.
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Options: FIIs were net bullish by 19,002 contracts.
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Highest Put OI: 25,500
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Highest Call OI: 26,000
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Stocks on Radar
Bullish: Power India, LICI, Nykaa, ITC, Amber Enterprises, Muthoot Finance, Kotak Bank, Hindustan Unilever, Kaynes Technology, Bharti Airtel
Bearish: Uno Minda, Tata Technologies, Tata Elxsi, Siemens, Coforge, IEX, PB Fintech, Naukri, Solar Industries, NBCC
Key News & Events to Watch
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India–US Trade Agreement: Indian exporters to benefit from lower reciprocal tariffs of 18%, with potential tariff-free access for sectors such as generics, textiles, gems & jewellery, and aircraft parts.
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India–Malaysia Ties: Both nations signed 11 MoUs across trade, semiconductors, digital economy, healthcare, and security cooperation.
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MSCI EM Update: India slipped to fourth position in MSCI EM Index weight at 13.34%, behind China, Taiwan, and South Korea.
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Government Capex: ?12.2 lakh crore capex focus on highways, railways, metro projects, and shipbuilding.
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State Bank of India: Raised FY26 credit growth guidance to 13–15% after reporting a 24.5% YoY jump in Q3 net profit.
Nifty Technical Outlook
On Friday, the Nifty opened gap-down but rebounded strongly to reclaim the 25,600 level. The index faced rejection twice at the 50-day EMA, each time finding support at the 20-day EMA, and eventually closed decisively above the 50-day EMA in the final hour, signalling bullish momentum on RBI policy day. FMCG supported the index, led by a 5% surge in ITC on proposed cigar price hikes and block deals, while IT stocks lagged amid AI concerns and weakness in TCS and Tech Mahindra. IndiaVIX fell 20% for the week, signalling cooling volatility. Despite volatility during the Union Budget week, the Nifty gained 3.5% for the week. RBI MPC unanimously held the repo rate at 5.25%, the third pause in four meetings after 100 bps cuts in Feb–Jun 2025 and a 25 bps cut in December 2025. Market sentiment to be driven by the fine print of the India-US trade pact. The Nifty gained 50.90 points closing at 25,693.70. The Nifty formed a bullish candlestick pattern on the daily chart, and we expect the buying interest to continue for the day. The volatility index IndiaVIX has closed below 12 and we expect the volatility to ease in the short term. The Nifty short-term trend remains bullish and the trend will turn bearish only below 25,450 levels. The 9-day simple moving average is placed at 25,426.
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