Daily Morning Report – 03/02/26

NIFTY OUTLOOK: 25088.40
FII: -1832.46 cr  DII: 2446.33 cr

As discussed yesterday, market behaviour remained largely on expected lines. Nifty respected the crucial support of 24700, making a day’s low of 24679.40 before staging a recovery to a day’s high of 25108.10.

A bullish candle formation on the daily chart suggests that buyers made a visible attempt to build short-term support. If supportive buying continues, Nifty may rally towards 25267–25355 on a decisive breakout above 25177. Sustained demand could further open the possibility of testing 25443.

On the downside, the 25000–24911 zone is expected to act as immediate support. A decisive break and sustained move below this range could drag Nifty lower towards 24823–24733.

Bank Nifty OUTLOOK:
Spot: 58619.00  PCR: 0.83
Max CE OI: 60000  Max PE OI: 60000

On 2nd February 2026, Bank Nifty closed at 58619.00, down 201.80 points (-0.35%). The index witnessed a total intraday movement of 857.20 points, recording a high of 58687.05 and a low of 57829.85.

Technical view                                        

Important support and resistance level of Bank nifty are 57780 and 59050 respectively.  

Intraday Support and resistance of Bank nifty are 58383 and 58855 respectively.

The Relative Strength Index (RSI) for the Nifty Bank index at 43.3. Below 30 is considered oversold and above 70 overbought.  

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 @ 97.57

2.Vix is @ 16.19 ( -7.22)

3.Brent crude is @ 65.94 (4.88 )

4.10 years bond yield is @ 4.274

Note: The much-awaited India–US trade deal has finally been agreed and comes into effect immediately. US President Donald Trump announced that the United States will lower reciprocal tariffs on Indian goods from 25 % to 18 %, significantly reducing the tariff burden on Indian exports to the US market. Washington will also remove the additional 25 % tariff linked to India’s purchases of Russian oil, provided India ceases such imports. Prime Minister Narendra Modi confirmed the move and said “Made in India” products will now have reduced tariffs in the US.

Under the agreement, India has committed to large-scale purchases of US products across energy, technology, agriculture, coal and other categories, reportedly exceeding USD 500 billion, enhancing strategic commercial ties.

Markets reacted very positively to the news. Indian equities rose sharply and the rupee strengthened over 1 % against the US dollar, reflecting renewed investor confidence and optimism about export prospects under the new tariff regime.

Conclusion: The trade deal removes the overhang of punitive tariffs that had weighed on Indian exporters and investor sentiment. Combined with ongoing GST and income-tax reforms, strong liquidity conditions, and an expanding network of trade partnerships, this agreement could boost capital inflows and improve market breadth.

We expect FIIs to return with increased confidence. Mid-caps and small-caps, which have lagged frontline peers, may outperform as export-oriented sectors regain traction. Mid-cap valuations currently appear attractively discounted relative to large caps, and small caps also show potential for catch-up rallies.

On the commodity front, geopolitical tension and trade clarity may lead to near-term consolidation in bullion prices. Gold is expected to settle around USD 3900–4000 /oz and Silver around USD 65–68 /oz. Materials stocks that have corrected sharply over recent sessions may form a base and resume upward momentum.

Sectors to watch: Defence, semiconductors, data centres, textiles and IT services. Potential stock names include:
• AnantRaj (data centre)
• CG Power (semiconductors)
• BEL, BDL, HAL, Mazagon Dock, Apollo Micro (defence)
• PGEL, Gokul, KPR Mills (textiles)
• Infosys, TCS (IT)

Important Pivot Point Levels for Today                                                                                                                          

Nifty

Bank Nifty

By Ashok Bhandari (RA)

SEBI Regd. No. INH00019549