Quote on Pre-market comment for Wednesday Feb 4 by Aakash Shah, Technical Research Analyst, Choice Broking
Below the Quote on Pre-market comment for Wednesday Feb 4 by Aakash Shah, Technical Research Analyst, Choice Broking
Indian equities are expected to open on a flat to slightly negative note on February 4, with GIFT Nifty indicating an opening around 25,764.5, down nearly 47.6 points. Market sentiment is likely to remain cautious, driven by global equity cues, movements in crude oil prices, and institutional fund flows.
The Nifty 50 began the previous session with a strong gap-up of nearly 1,250 points, but witnessed sharp volatility during early trade. After correcting about 700 points from its intraday high of 26,341.20, the index found support near 25,641 and staged a rebound of around 223 points to close at 25,727, indicating buying interest at lower levels. Immediate resistance is placed in the 25,850–25,900 zone, while support lies at 25,550–25,600. The RSI at 53.32 is trending upward, though it remains below strong bullish territory.
The Bank Nifty also opened with a robust gap-up of approximately 3,200 points, but selling pressure pushed the index down nearly 1,950 points to an intraday low of 59,793. A subsequent recovery of about 469 points helped the index close at 60,041, reflecting support-based buying. Resistance is seen at 60,700–60,800, while support is placed at 59,700–59,800. The RSI at 55.82 continues to trend higher, indicating mild bullish momentum.
On the institutional front, foreign institutional investors (FIIs) turned net buyers on February 3, purchasing equities worth ?5,236 crore after remaining net sellers for the previous two sessions. Domestic institutional investors (DIIs) extended their buying streak for a second consecutive day, investing over ?1,000 crore.
Given persistent global uncertainties and elevated volatility, traders are advised to remain selective and disciplined, focusing on fundamentally strong stocks during market declines. Fresh long positions should be considered only after a confirmed and sustained breakout above the 26,000 level on the Nifty, which would signal a meaningful improvement in overall market sentiment.
Above views are of the author and not of the website kindly read disclaimer
.jpg)
