Indian Stock Market Closes in Positive Territory on Friday Session
The Indian stock market concluded the trading session on Friday, February 6, with both major indices registering gains. The benchmark Sensex advanced by 266 points, representing a solid increase of 0.32 percent, to settle at 83,580.40. Simultaneously, the broader Nifty 50 index added 51 points, equivalent to a 0.20 percent rise, finishing the day at 25,693.70.
Market Performance and Key Drivers
This upward movement was primarily propelled by strategic buying activity in select heavyweight stocks. Notable contributors to the positive momentum included ITC, Kotak Mahindra Bank, and ICICI Bank, which demonstrated significant investor interest throughout the trading day. The market's performance reflects a cautiously optimistic sentiment among traders and institutional investors.
Technical Analysis of Nifty 50
According to Sumeet Bagadia, Executive Director at Choice Broking, the Nifty 50 experienced a volatile session. The index opened on a weak note and faced considerable selling pressure during the first half, touching an intraday low of 25,491.90. However, a robust rebound in the latter half of trading enabled a recovery of approximately 210 points from the day's lowest point.
Bagadia highlighted that near-term resistance is currently positioned in the 25,800–25,850 band, while immediate support lies within the 25,550–25,600 zone. The daily Relative Strength Index (RSI) stands at 52.72, indicating neutral momentum with a slight bullish undertone. Additionally, the India VIX declined by 1.87 percent to 11.94, suggesting reduced volatility and enhanced market stability.
In the derivatives segment, significant put writing is visible at the 25,500 strike, while substantial call writing is observed at the 25,800 and 26,000 strikes. This pattern defines a clear short-term consolidation range for the index. Bagadia advised that as long as the Nifty 50 maintains a closing above 25,500, investors can adopt a selective buy-on-decline approach, with a strict stop-loss set at 25,450.
Bank Nifty Shows Relative Resilience
The Bank Nifty index demonstrated notable resilience compared to broader market volatility, closing near the 60,100 zone. This performance underscores continued relative strength within the banking and financial sectors, which have been key pillars of market stability.
Regarding the Bank Nifty outlook, Bagadia noted that the index is encountering immediate resistance around the 60,300–60,400 zone, where supply pressure may emerge. A clean breakout and sustained acceptance above this resistance level would further strengthen the bullish structure, potentially opening a path toward the higher resistance band near 60,500–61,000.
Overall, Bank Nifty maintains a positive bias with range-bound to bullish undertones. Trend continuation will largely depend on the index's ability to defend key support levels while effectively absorbing supply near overhead resistance zones.
Stock Recommendations for Investors
Sumeet Bagadia has recommended three specific stocks for consideration on Tuesday, January 27. These stock picks are based on technical analysis and market trends:
- IRB Infrastructure Developers: Buy at ₹43.14 | Target Price: ₹46 | Stop Loss: ₹41.78
- Bank of Maharashtra: Buy at ₹65.52 | Target Price: ₹70.5 | Stop Loss: ₹63.18
- Zee Entertainment Enterprises: Buy at ₹89.37 | Target Price: ₹98 | Stop Loss: ₹85.35
Disclaimer: This article is intended for educational purposes only. The views and recommendations presented above are those of individual analysts or broking companies and do not represent financial advice. Investors are strongly advised to consult with certified experts and conduct thorough research before making any investment decisions.
