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Below the Quote on Pre-market comment for Tuesday February 10 by Aakash Shah, Technical Research Analyst, Choice Broking

Indian equity markets are expected to begin Tuesday’s session on a positive note, supported by firm global cues and encouraging signals from GIFT Nifty, which is indicating a higher opening. Improving sentiment around renewed foreign inflows, strength in U.S. markets, and optimism surrounding the interim India–U.S. trade framework are providing near-term support. However, with key resistance levels approaching, traders may remain cautious at higher levels.

In the previous session, benchmark indices extended their recovery, with the Nifty 50 closing above the 25,850 mark, while the Sensex gained close to 500 points. The rally was led by banking, PSU banks, metals, and select consumption and capital goods stocks. State Bank of India outperformed sharply following strong Q3 results, boosting overall sentiment in the banking space. Market breadth improved, though selective profit-taking was seen in IT and FMCG names.

From a technical perspective, the Nifty has strengthened after reclaiming key moving averages and sustaining above the 25,700–25,800 zone. The immediate upside resistance is placed near 26,000, followed by 26,100. A decisive breakout above 26,000 could trigger further short-covering and extend the ongoing recovery. On the downside, 25,700 remains an important support, followed by 25,500. The overall structure remains positive.

The Bank Nifty continues to show relative outperformance, supported by strong buying in PSU and select private banks. Immediate support is seen near 60,300–60,400, while resistance is placed around 60,900–61,000. Sustained strength above this zone could further improve sentiment in the financial space.

On the flows front, foreign institutional investors (FIIs) turned net buyers on Monday, purchasing shares worth approximately ?2,255 crore, marking the second consecutive session of buying after a prolonged selling phase. Meanwhile, domestic institutional investors (DIIs) were largely neutral, with marginal net buying of around ?4 crore, reflecting selective participation.

Overall, markets are likely to witness a positive but range-bound session with a bullish bias. Traders may continue to focus on banking, PSU, metals, and stock-specific opportunities driven by earnings and sectoral news. However, with Nifty nearing the key 26,000 resistance, a cautious approach with disciplined risk management is advised.

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