📊 Market Outlook – 5 February 2026

🌐 Global & Domestic Cues Indian equity markets are expected to open flat to mildly positive, supported by optimism around ongoing India–US trade negotiations, sustained FII participation, and strong Q3 corporate earnings. However, markets may remain range-bound as investors await clarity on the RBI credit policy scheduled tomorrow. Globally, US markets showed mixed trends as technology stocks corrected sharply amid rising concerns about AI-led disruption, particularly in software and IT services. Asian markets are trading cautious, while US futures indicate mild recovery. Despite short-term volatility, the broader market structure remains constructive, with mid-cap and small-cap stocks continuing to outperform, driven by earnings momentum and sector-specific triggers. 📈 Index & Technical View Nifty 50 Trend remains bullish as long as the index holds above 25,550 Upside targets: 26,000 → 26,200 Support levels: 25,550 → 25,400 Options data suggests an immediate trading range of 25,300–26,300 Bank Nifty Sustaining above 60,000 keeps bias positive Upside levels: 60,500 → 60,750 Support: 60,000 → 59,750 Inside-bar formation indicates consolidation with positive bias 🧭 Sector-Wise Strategy (Instead of Stock Names) 🏦 Banking & Financials Focus remains strong ahead of the RBI credit policy PSU banks and NBFCs may see renewed interest Improving asset quality and policy clarity are key triggers 🔩 Metals Base metal prices on LME are rising Positive sentiment expected in copper, steel, and mining-linked stocks 🛢️ Oil & Energy (Upstream) Brent crude surged nearly 4% to ~$69/bbl Upstream energy companies expected to benefit from higher realizations 💻 Information Technology Sector likely to remain volatile Global tech sell-off due to AI disruption fears continues to weigh on sentiment Stock-specific action expected rather than broad-based rally 🛍️ Consumption & Retail Strong Q3 earnings momentum Demand revival and margin stability remain key positives 🚗 Auto & Auto Ancillaries Select segments benefiting from capacity expansion and exports Margin improvement visible in tyre and auto component space 🏗️ Infrastructure & Capital Goods Order inflows, capex announcements, and government push remain supportive Medium- to long-term outlook remains positive 💊 Pharmaceuticals & Healthcare USFDA approvals and strong earnings driving selective upside Export-focused pharma companies remain in focus 💰 Institutional Activity FIIs: Mixed in cash market but positive derivative positioning DIIs: Continued buying support FII long-short ratio improving, indicating short covering and selective long build-up 🌍 Global Market Snapshot US: Nasdaq declined sharply; Dow gained marginally Europe: Markets gained on easing inflation and strong earnings Asia: Mostly cautious amid tech sell-off 🟡 Commodities & Macro Gold: Volatile but supported on dips Crude Oil: Positive bias due to geopolitical developments USD/INR: Stable, supportive for equities VIX: Low, indicating controlled volatility 📝 Conclusion The broader Indian equity market remains structurally strong, supported by earnings growth, favorable global trade developments, and institutional participation. While headline indices may consolidate in the short term, sector-specific opportunities in mid-caps and fundamentally strong themes continue to offer trading and positional opportunities. Any market correction should be viewed as a buy-on-dip opportunity. ⚠️ Disclaimer This blog is for educational and informational purposes only. We are not SEBI registered investment advisors or research analysts. The views expressed are personal interpretations based on publicly available data and market observations. Investments in the securities market are subject to market risks. Readers are advised to consult a SEBI-registered financial advisor before making any investment decisions.