Indian Market Shows Resilience Amid Global Headwinds
The Indian equity market demonstrated notable strength during the week concluding Friday, February 6, registering appreciable gains despite a complex backdrop. Key influencing factors included the Union Budget 2026 announcements, developments in the India–US trade agreement, worldwide apprehensions regarding artificial intelligence-induced disruptions in technology sectors, and the Reserve Bank of India's latest monetary policy decision.
The benchmark Nifty 50 index advanced by 1.5 percent over the week, settling at a closing level of 25,693.70 points. This performance marked the index's most robust weekly showing in a three-month period.
Expert Analysis on Market Structure and Trends
Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, provided detailed insights. "Despite experiencing intermittent profit booking and weakness in IT stocks triggered by global AI-driven sell-offs, the index managed to recover and close at 25,693.70," Patel highlighted. He noted that the gains were principally underpinned by sectors with strong domestic orientation, including Fast-Moving Consumer Goods (FMCG), realty, metals, and others.
Patel emphasized that the Nifty staged a powerful rebound from a foundational support level near 24,500. However, the upward move met with substantial resistance in the 25,900 to 26,000 zone. Consequently, the index has entered a phase of short-term consolidation, signaling temporary exhaustion following the sharp rally observed recently.
Critical Support and Resistance Levels Identified
On the potential downside, Patel pinpointed 25,450 as a crucial pivot level. A sustained breach below this mark could potentially initiate a corrective movement toward 25,100, with a broader support zone established between 24,800 and 24,500. "As long as this demand band holds firm, the medium-term trend for the index remains constructive," he stated.
Conversely, the 25,900–26,400 range constitutes a significant resistance cluster. According to Patel, a decisive and sustained breakout above the 26,400 threshold would be necessary to re-establish bullish momentum and confirm the commencement of the next leg of the uptrend.
Until such a breakout materializes, Patel anticipates the index will likely trade within a defined range. During this period, stock-specific opportunities are expected to outperform the broader benchmark index.
Bank Nifty Outlook and Key Levels
Shifting focus to the banking sector index, Patel indicated that a sustained breakout above the 62,000 level is required to confirm renewed upward momentum for the Bank Nifty. In the absence of this, consolidation with a neutral-to-positive bias is the anticipated scenario.
"Immediate support is positioned near 59,000, which aligns with a recent gap area and serves as a crucial short-term demand zone. As long as this level holds, the broader structure remains intact, though a cautious and selective approach is advisable for traders," Patel advised.
Short-Term Stock Recommendations from Technical Expert
Based on his technical analysis, Jigar Patel recommends considering the following three stocks for potential short-term trading opportunities over the next one to two weeks.
Gujarat Gas: Technical Breakout Signals Uptrend
Previous Close: ₹425.45 | Buying Zone: ₹426 to ₹420 | Target Price: ₹465 | Stop Loss: ₹400
Patel highlighted that Gujarat Gas has executed a strong technical breakout. The stock price closed above the William Alligator indicator, with all three component lines—Jaw, Teeth, and Lips—aligning in a parallel formation. This configuration is classically interpreted as signaling the beginning of a fresh uptrend, typically indicating trend expansion after a phase of consolidation.
Adding conviction to the bullish setup, the Moving Average Convergence Divergence (MACD) indicator has crossed above the zero line. This reflects strengthening momentum and a shift toward positive territory. Furthermore, the Directional Movement Index (DMI) has also turned positive, indicating improving directional strength in favor of the bulls.
"Considering the confluence of these technical indicators, the stock appears poised for further upside. Traders may consider buying in the zone of ₹426– ₹420, with a stop loss placed at ₹400 and an upside target of ₹465," Patel concluded.
IFCI: Emerging Sustainable Trend Move
Previous Close: ₹60.18 | Buying Zone: ₹61 to ₹59 | Target Price: ₹70 | Stop Loss: ₹55
Patel noted that IFCI is displaying encouraging signs on the technical charts. The stock has moved above the William Alligator indicator, and significantly, the three lines—Jaw, Teeth, and Lips—are running parallel. This pattern generally suggests the emergence of a sustainable trending move following a period of consolidation.
Momentum indicators are corroborating the bullish perspective. The MACD has crossed above the zero line, highlighting a shift toward positive momentum. Simultaneously, the DMI has turned positive, suggesting strengthening buying pressure and an improvement in overall trend strength.
"With price structure and momentum indicators aligned, the setup favours further upside. Traders can look to accumulate the stock in the ₹61– ₹59 range, keeping a stop loss at ₹55, while aiming for a potential target of ₹70 in the near term," Patel explained.
Godrej Properties: Oversold Conditions Hint at Reversal
Previous Close: ₹1,699.80 | Buying Zone: ₹1,700 to ₹1,600 | Target Price: ₹1,950 | Stop Loss: ₹1,500
According to Patel, Godrej Properties has undergone a sharp correction, declining from approximately ₹2,166 to a recent low near ₹1,475. This pronounced drop has pushed momentum indicators into deeply oversold territory. The MACD, in particular, has fallen to extreme historical levels, reflecting the intensity of the recent sell-off.
Patel pointed out that historically, whenever the MACD has generated a crossover—especially from such extreme zones—it has preceded meaningful price movements. In the current scenario, a bullish crossover is emerging from levels comparable to those observed at the beginning of 2025 and again in early February 2026.
Such crosses originating from deeply oversold conditions often mark the beginning of a relief rally or a potential trend reversal. "Given this setup, traders may consider accumulating the stock in a staggered manner within the ₹1,700– ₹1,600 zone. A stop loss can be maintained at ₹1,500 on a closing basis, with an upside target of ₹1,950 in the near to medium term," Patel recommended.
Disclaimer: This analysis is for educational purposes only. The views and recommendations expressed are those of the individual analyst. Investors are strongly advised to consult with certified financial experts before making any investment decisions, as market conditions are dynamic and individual circumstances vary.
