1. Market Opening Indication
- GIFT Nifty February futures are down 29 points, suggesting a flat to mildly negative opening for Nifty 50.
2. Recent Nifty Performance
- Over the last four months, the Nifty has declined 11.3%.
- Despite the decline, rollover activity in Nifty futures indicates traders’ willingness to hold positions.
3. Futures & Derivatives Data
- 81% of Nifty futures positions were rolled over from January to February (higher than the usual 77%).
- This suggests market stability and potential recovery.
4. Sectoral Open Interest
- Financial Services and IT sectors hold the highest open interest (~50% of the market).
- Foreign Portfolio Investors (FPIs) have reduced short positions in index futures over the last six sessions.
- This could indicate a slowing down of foreign outflows.
5. Key Upcoming Events & Their Impact
- Union Budget 2025 (February 1) – Key fiscal policies may influence market trends.
- RBI Monetary Policy Decision (Next week) – Interest rate changes could impact liquidity and banking stocks.
6. Trading Outlook & Strategy
- Despite today’s weak opening, market sentiment remains cautiously optimistic.
- Watch for key support & resistance levels.
- Monitor sector-specific trends and budget announcements for further cues.
👉 Conclusion: While the market is off to a slow start, derivatives data and FPI actions indicate a potential relief rally in February. Traders should remain watchful of economic events and sectoral movements.
