The Indian stock market is expected to have a range-bound to mildly positive start on February 5, 2026, following a day of consolidation with selective momentum in specific sectors on February 4.

Key Observations from February 4, 2026:

• Nifty 50: Closed at 25,776, trading in a range of 25,694 to 25,818. It opened with a gap down but quickly reversed, indicating strong buying interest. Resistance was noted at 25,800.
• Sensex: Closed at 83,817, showing a relatively flat closing after intraday movements.
• Bank Nifty: Displayed strong upside momentum, closing near its all-time high at 60,228.
• Volatility: The India VIX was around 12, suggesting cooling volatility.

Market Influences to Watch:

• Global Cues: Positive undertones from European markets, particularly gains in the FTSE 100 and CAC 40, could support large-cap and globally-linked stocks. U.S. market updates should also be monitored.
• FII/DII Activity: Strong and consistent FII (Foreign Institutional Investor) buying, along with DII (Domestic Institutional Investor) support, may provide stability and encourage selective buying. On February 4, 2026, FII net purchase/sales was 29.80 and DII net purchase/sales was 249.50.
• Technical Indicators: The Nifty 50 is consolidating, with a neutral to slightly bullish undertone due to sector rotation. The index maintained resistance at 25,800.
• Nifty Financial Services: Showed strength based on predicted support and resistance levels.

Predictions and Expectations:

• Overall Market Structure: The Indian stock market is consolidating after an anticipated gap-up opening.
• Nifty 50: A decisive break above 26,000 with healthy volumes is needed to sustain further directional movement; otherwise, the index is likely to remain in a consolidation phase. Immediate support is expected in the 25,650–25,600 range.
• Sensex: If the Sensex sustains above 84,000 with volume, targets are 84,278 (technical resistance), 84,500 (major resistance cluster), 84,631 (short covering target), and an extended upside of 84,760.
• Nifty Midcap: The index shows strong bullish momentum likely to continue, with targets of 13,792-13,831 achievable if today's high is sustained with volume confirmation.

Key Stocks and Sectors:

• IT Sector: Weakness in global technology stocks may continue to affect domestic IT names. INFY, TCS, HCLTECH, TECHM, and WIPRO showed weakness. Traders were cited pivoting out of software companies due to increased competition from Anthropic AI agents.
• Gainers: PSU utilities, energy, and select consumption stocks showed buying interest. TRENT, ETERNAL, ONGC, NTPC, and ADANIPORTS led gains.
• Resilient Sectors: Banking, energy, metal, and auto sectors are expected to remain relatively resilient.

Important Levels to Watch:

• Nifty 50: Support levels are at 25,730-27,740, 27,683, and 27,637. Upside target is 27,875, which must be sustained for upside momentum, with extended targets at 27,932-27,934, 27,985, and 28,030.
• Sensex: Near-term support levels are at 82,448/81,576, and resistance levels are at 85,267/86,138.

Concluding Remarks:

The Indian market has transitioned from uncertainty to clarity, supported by strong domestic fundamentals (6-7% growth, controlled inflation), structural tailwinds, policy clarity, and positive FII sentiment. While a range-bound opening is likely, positive global cues and sustained FII/DII support could lead to a mildly positive trend. Traders should focus on sector-specific opportunities, while investors may find value in accumulating quality stocks during volatility.