As of February 1, 2025, the Nifty 50 index is exhibiting specific support and resistance levels that traders should monitor for effective decision-making.
Key Support and Resistance Levels:
- Immediate Support: The Nifty has immediate support at 23,065. A breach below this level could lead to increased selling pressure.
- Immediate Resistance: The index faces immediate resistance in the 23,350-23,400 zone. A decisive move above this range may signal the continuation of the current rally.
Technical Indicators:
- Moving Averages: The Nifty has recently closed above its 10-day moving average (10-DMA) for the first time since January 3, 2025, indicating a potential shift from a bearish to a bullish trend.
- Candlestick Patterns: A long bullish candlestick formation on the daily chart suggests increased investor participation and a positive sentiment.
Derivative Market Insights:
- Rollover Data: Approximately 81% of Nifty futures positions were rolled over into the February series, higher than the average of 77% in the previous three series. This indicates traders’ confidence and willingness to maintain positions.
- Sectoral Open Interest: Financial services and information technology sectors have the highest open interest, reflecting significant trader interest in these areas.
Foreign Investor Activity:
- FPI Positions: Foreign portfolio investors have reduced their short positions in index futures over the last six sessions, suggesting a potential slowdown in outflows and a more stable market outlook.
Upcoming Events:
- Union Budget Announcement: The annual budget is scheduled for today, February 1. Any fiscal measures introduced could significantly influence market sentiment and direction.
- RBI Policy Decision: The Reserve Bank of India’s policy decision is expected next week. Anticipated measures, such as liquidity injections or interest rate adjustments, could further impact market dynamics.
Conclusion:
Traders should closely monitor the aforementioned support and resistance levels, as well as key technical indicators, to make informed decisions. Staying updated on sector-specific trends and forthcoming economic events will provide additional insights into potential market movements.
