📊 Market Outlook & Pre-Market Technical Setup – 4 February 2026

Indian equity markets witnessed a historic rally after the announcement of the India–US trade deal framework, leading to sharp gap-up openings across benchmark indices. However, after the initial euphoria, markets cooled off and moved into consolidation mode as investors booked partial profits and awaited clarity on the final agreement. 🔎 Index Technical Overview Nifty 50 Nifty opened with a massive gap-up near the 26300 zone but gave up part of the gains intraday and consolidated thereafter. Despite forming a negative candle, the index successfully negated the recent lower-low formation, indicating strength. Support: 25500 → 25300 Resistance: 26000 → 26200 Strength likely to rebuild as long as Nifty holds above 25500 Derivative View: Max Call OI: 26000, 25800 Max Put OI: 25000, 25500 Immediate range: 25500 – 26000 Broader range: 25200 – 26200 Sensex Sensex opened with a gap-up of nearly 4200 points, cooled off intraday but still managed to close with strong gains. The index invalidated its recent lower-low structure and is now trading above short-term moving averages. Support: 83400 → 82900 Resistance: 84000 → 84500 Bank Nifty Bank Nifty touched a fresh lifetime high near 61764, followed by sharp profit booking. Buying interest emerged near lower levels, resulting in consolidation. Support: 59750 → 59500 Resistance: 60500 → 60750 Strength intact above 59750 🌍 Global Market Cues US Markets: Tech-heavy indices declined sharply due to concerns over high AI valuations Asian Markets: Down 1–2%, led by IT selloff European Markets: Mildly negative amid tech weakness Gold & Silver: Sharp rally as USD weakened Crude Oil: Above $67/bbl due to geopolitical tensions 🏦 Key Domestic Triggers RBI 3-day MPC meeting begins today Credit policy decision on 6th February FIIs turned aggressive buyers (highest inflow in last 3 months) INR strengthened sharply against USD 📈 Sector-Wise Outlook ✅ Positive / Focus Sectors Textiles & Apparel Gems & Jewellery Engineering & Capital Goods Auto Components Chemicals Metals (supported by rising LME prices) Sugar (tightening global supply outlook) Upstream Oil & Gas (crude price strength) Defence & Infrastructure Renewable Energy & Power ⚠️ Cautious Sectors Information Technology (IT) Global tech selloff and AI valuation concerns may keep IT stocks under pressure. 🚀 Sector-Wise Strength Observed Banking & Financials Capital Goods & Infrastructure Logistics & Railways Pharmaceuticals Defence Manufacturing Specialty Chemicals Power & Renewable Energy 🐻 Sector-Wise Weakness Consumer Staples (Selective) IT Services New-age / Platform-based Businesses Certain FMCG names due to margin pressure 📌 Corporate & Earnings Highlights (Sector View) Pharma & Healthcare: Strong earnings momentum and regulatory positives Capital Goods: Order inflows and execution visibility remain strong Financial Services: Healthy AUM growth, stable asset quality Chemicals: Mixed results but specialty players outperforming Energy & Power: Capacity additions and renewable expansion supportive FMCG: Volume growth visible but margin pressure persists 🧠 Market Outlook – What to Expect Next? The market sentiment remains constructive but range-bound in the near term. While the India–US trade deal has significantly boosted confidence, investors may stay cautious until the final framework is announced. Strong Q3 earnings, improving FII participation, and a stable macro environment continue to provide downside support. 📌 Strategy: Prefer buy-on-dips approach Focus on sector leaders and trade-deal beneficiaries Avoid chasing gap-up moves aggressively ⚠️ Disclaimer This blog is for educational and informational purposes only. We are not SEBI registered investment advisors. The views expressed are based on publicly available data and technical analysis. Stock market investments are subject to market risks. Please consult your financial advisor before making any investment decisions.