Indian Stock Market Closes Positive on Friday, Led by Heavyweight Stocks
The Indian stock market concluded the trading session on Friday, February 6, on an optimistic note, buoyed by significant buying activity in select heavyweight stocks. Key players such as ITC, Kotak Mahindra Bank, and ICICI Bank spearheaded the upward momentum, contributing to a robust finish for the benchmark indices.
Benchmark Indices Show Gains Amid Mixed Global Signals
The Sensex surged by 266 points, equivalent to a 0.32% increase, settling at 83,580.40. Simultaneously, the Nifty 50 advanced by 51 points, or 0.20%, closing at 25,693.70. Market analysts attribute this positive performance to short covering in specific heavyweight stocks, occurring against a backdrop of mixed global cues.
Despite the encouraging Union Budget and India's recent trade agreements with the European Union and the United States, which have bolstered the country's macroeconomic outlook, investor sentiment remains tempered. Factors such as uneven quarterly earnings reports and persistent foreign fund outflows are fostering a cautious atmosphere among market participants.
Expert Insights: Ganesh Dongre on Market Dynamics
Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, provided a detailed analysis of the week's performance. He noted that the benchmark indices ended the week on a strong bullish note, supported by positive global and domestic developments. A pivotal trigger was the joint statement from the United States announcing a reduction in the so-called "reciprocal" tariff on Indian goods, lowering the effective rate to 18% and removing the earlier 25% levy effective from February 7.
"This development helped Nifty 50 close around 25,700, marking a weekly gain of nearly 1.25% despite heightened volatility," Dongre explained.
Nifty 50 Outlook: Support and Resistance Levels
Dongre believes that the Nifty has entered an oversold zone and is attempting to stabilize near key support levels. While selling pressure was evident earlier, supportive indicators like a Put-Call Ratio of approximately 0.75 suggest limited downside from current levels.
On the monthly chart, Nifty continues to hold its long-term trendline support near the 25,000–25,300 zone, reinforcing a constructive medium-term structure. Derivatives data indicate strong Call open interest at 26,000 and 26,500, forming a resistance band, while heavy Put open interest at 25,000–25,500 highlights a solid support base.
"A sustainable move above the 25,600–25,800 zone could open the door toward 26,000–26,300 in the coming weeks, though global tariff developments may cap sharp upside," he added.
Bank Nifty Analysis: Key Levels to Watch
Regarding the Bank Nifty outlook, Dongre highlighted that the index faces immediate resistance near 60,500, with significant positioning at the 60,000 strike. Maintaining levels above 58,000 remains crucial for sustaining strength.
"Overall, the outlook remains positive with a range-bound yet constructive bias, favouring a buy-on-dips approach, selective stock accumulation, and close monitoring of global cues and geopolitical developments," Dongre concluded.
Weekly Stock Recommendations: Buy or Sell
For investors seeking guidance, here are some weekly stock picks based on expert analysis:
- Trent: Buy at ₹4113, with a target price of ₹4500 and a stop loss of ₹3900.
- Oberoi Realty: Buy in the range of ₹1520-1550, targeting ₹1680, with a stop loss of ₹1460.
- Canara Bank: Buy at ₹147-150, aiming for ₹160, with a stop loss of ₹142.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
