Daily Morning Report – 02/02/26

NIFTY OUTLOOK: 24825.45
FII: -Rs. 588.34 cr | DII: -Rs. 682.73 cr

On breaching the 24920–25435 range, Nifty witnessed selling pressure. The index touched a day’s high of 25440.90 and, after breaking below 24920, slipped sharply to an intraday low of 24571.75.

Nifty trading below the key level of 25325 and remaining under the 24920 range signals continued weakness in the market. The index is also trading below the support level of 24809, a decisive break of which could open the door for the next immediate support near 24700.

All eyes are now on the day’s low of 24571. Allow the Nifty to stabilise at current levels. Any further developments will be shared in the group.

BANK NIFTY OUTLOOK:
Spot: 58417.20 | PCR: 0.85
Max CE OI: 60000 | Max PE OI: 60000

On 1st February 2026, Bank Nifty closed at 58417.20, down 1193.25 points or 2.00 percent. The index witnessed a wide intraday movement of 2082.50 points, registering a high of 59865.70 and a low of 57783.20.

Technical View:
Key support and resistance levels for Bank Nifty are placed at 57970 and 59450, respectively. Intraday support and resistance are seen at 57845 and 58990.

The RSI for Bank Nifty stands at 41.2, indicating weak momentum. An RSI below 30 signals oversold conditions, while above 70 indicates overbought levels.

Bank nifty Day SMA Analysis

Bank nifty is trading above 3 out of 8 SMA’s (100, 150, 200 Day).

Bank nifty is trading below 5 out of 8 SMA’s. (5, 10, 20, 30, 50 Day).

No Candlestick Pattern was identified in bank nifty on daily chart.

Macros:

1.Dollar index is @ 97.07

2.Vix is @ 17.44 (+0.56 %)

3.Brent crude is @ 67.10

4.US 10 years bond yield is @ 4.256.

Note:
The U.S. government entered what is expected to be a brief shutdown on Saturday after Congress failed to approve a funding deal ahead of the midnight deadline. The shutdown will be partial in nature, impacting a section of government operations.

In a historic development, the UK Prime Minister visited China for trade negotiations, a move that drew criticism from former U.S. President Donald Trump. Keir Starmer became the latest Western leader to engage with China in an attempt to secure an economic and geopolitical hedge against Trump’s unpredictability, a step that reportedly angered the U.S. leader.

From an Indian perspective, the government pushed manufacturing to the forefront in its Budget, prioritising sectors such as semiconductors, biopharma, and renewables. However, it stopped short of implementing the bold structural reforms that investors were expecting, especially amid rising global geopolitical tensions.

The absence of ambitious reforms, coupled with an increase in the transaction tax on derivatives, unsettled equity markets. As a result, benchmark indices tumbled nearly 2 percent, marking their worst Budget-day performance in six years.

Economists and a global rating agency noted that the Budget for the next fiscal year lacked the firepower needed to support markets and fell short of being a “breakthrough.” As one expert remarked, the Budget appeared largely tactical rather than transformational, with no groundbreaking measures announced.

Important Pivot Point Levels for Today                                                                                                                          

Nifty

Bank Nifty

By Ashok Bhandari (RA)

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