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Stock market recap: Domestic stock market benchmarks, the Sensex and the Nifty 50, ended with decent gains on Friday, 6 February, on buying in select heavyweights, including ITC, Kotak Mahindra Bank, and ICICI Bank.

The Sensex ended 266 points, or 0.32%, higher at 83,580.40, while the Nifty 50 closed at 25,693.70, up 51 points, or 0.20%.

However, the mid and small-cap segments underperformed. The BSE 150 MidCap Index dropped 0.11%, while the BSE 250 SmallCap Index fell by 0.42%.

Two stock recommendations by MarketSmith India for 9 February:

Buy: Navin Fluorine International Ltd (current price: ₹6,417)

Buy: Ceigall India Ltd (current price: ₹291)

Nifty 50 recap | 6 February

Indian equities ended Friday’s session on a mildly positive note, with benchmark indices consolidating near recent highs amid mixed sectoral cues.

Nifty 50 closed at 25,693.7, up 0.20%, after oscillating within a narrow intraday range of 25,491–25,704, indicating a lack of strong directional conviction. Sensex also edged higher in tandem. However, Market breadth remained weak, with 1,340 stocks advancing against 1,784 declines, underscoring continued pressure in the broader market despite headline index resilience.

Sector-wise, defensives and consumption-oriented pockets provided support, with FMCG (+2.3%) and Consumer Durables (+1.0%) outperforming steady demand expectations. Private Banks (+0.6%) and Oil & Gas (+0.5%) also contributed positively. In contrast, IT (-1.5%) underperformed amid lingering concerns over global tech spending, while Pharma (-0.7%), Auto (-0.5%), and PSU Banks (-0.5%) remained under pressure. Mid and small-cap Healthcare stocks also saw profit-taking.

From a technical perspective, Nifty 50 has shown a meaningful improvement in price structure after a volatile phase. The index recently reclaimed both its 100- and 200-DMA in quick succession, signaling a restoration of medium-term trend strength and renewed institutional participation. This recovery momentum propelled the index toward the upper end of its broader trading band, where it briefly approached its all-time high before facing selling pressure, indicating supply emerging at elevated levels.

Momentum indicators are stabilizing. The RSI has rebounded from lower levels and is currently holding in the neutral-to-positive zone, suggesting improving momentum without entering overheated territory. Meanwhile, the MACD, though still below its signal line earlier, is showing signs of flattening with a nascent positive crossover attempt, pointing to a potential continuation of the recovery if follow-through buying persists.

According to O’Neil’s methodology of market direction, the Indian equity market transitioned from a Downtrend to a Rally Attempt, indicating an early improvement in the near-term market tone.

The index delivered a decisive close above its 100- and 200-DMA in a single move, underscoring a sharp improvement in near- to medium-term sentiment. However, after the recent euphoric single-day rally, the market is likely to ender a phase of consolidation as it digests gains and attempts to build a healthy base at higher levels.

Such stabilization would be constructive for the sustainability of the ongoing uptrend. On the downside, 25,400–25,100 is expected to act as an immediate cushion, where buying interest may emerge on declines. On the upside, 25,800–26,000 represents a strong hurdle for the index, given the supply seen near higher levels. A sustained close above 26,000 would be a key technical trigger and could open the door for further upside toward 26,300–26,400 in the near term.

Nifty Bank performance | 6 February

Nifty Bank opened on a negative note and witnessed early volatility during the session. After opening at 59,967.10, the index slipped to an intraday low of 59,644.55, where buying interest emerged from lower levels.

The rebound gathered strength throughout the day, pushing the index to an intraday high of 60,149.90. Nifty Bank finally closed at 60,120.55, ending marginally higher on a positive note. The recovery from the day’s low highlights continued dip-buying interest near key moving averages, indicating that market participants are actively defending crucial support zones despite broader market uncertainty.

From an indicator perspective, momentum remains moderately constructive. The RSI is near 56, trading above 50, suggesting improving momentum without entering overbought territory. The MACD is positive, with the signal line holding above the zero line, indicating a continuation of the underlying bullish bias. However, momentum remains gradual rather than aggressive, reflecting a phase of consolidation after the recent rally. This setup suggests that while the trend is intact, follow-through buying is required for a sustained directional move in the near term.

On the levels front, immediate support is seen near 59,500, followed by a stronger base around 58,300–58,000, aligned with the 100-DMA. On the upside, 60,300–60,500 acts as an immediate resistance zone, while a decisive breakout above this range could open the door toward61,200–61,500. Given recent stability in heavyweight banking stocks and improving macro cues, Nifty Bank is expected to trade with a positive bias, although intermittent consolidation cannot be ruled out unless fresh triggers emerge.

MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O'Neil. You can access a 10-day free trial by registering on its website.

Trade name: William O’Neil India Pvt. Ltd.

Sebi Registration No.: INH000015543

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.

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