Daily Morning Report – 04/02/26

NIFTY OUTLOOK: 25727.55

FII: Rs. 5236.28 cr  DII: Rs. 1014.24 cr

As discussed yesterday, market behaviour remained on expected lines. Strong bullish momentum, supported by the India–US trade deal, led to an extreme move. Volatility remains elevated, hence it is advisable to allow prices to settle before taking aggressive positions.

A long bearish candle has appeared on the daily chart, and the Budget-day candle has created a wide trading range for Nifty. For the intraday perspective, if Nifty decisively breaks below 25610, it may slip further towards 25490–25371. If selling pressure intensifies, the index may test 25253.

However, the bearish candle has closed above Monday’s closing, indicating that the broader bullish momentum remains intact. On the upside, sustained strength may push Nifty towards 25846–25965. A decisive breakout and hold above these levels could extend the rally towards 26083–26205.

BANK NIFTY OUTLOOK

SPOT: 60041.30  PCR: 0.98
Max CE OI: 60000  Max PE OI: 60000

On 3rd February 2026, Bank Nifty closed at 60041.30, up 422.30 points (0.71%). The index witnessed a sharp intraday movement of 1971.65 points, registering a high of 61764.85 and a low of 59793.20.

Technical View:
Key support and resistance levels for Bank Nifty are 59670 and 60715, respectively.
Intraday support is placed at 59499, while intraday resistance stands at 60583.

The RSI is at 55.8, indicating neutral momentum with scope for further movement on either side. Values below 30 indicate oversold conditions, while readings above 70 signal overbought territory.

Bank nifty Day SMA Analysis:

Bank nifty is trading above 8 out of 8 SMA’s (5, 10, 20, 30, 50, 100, 150, 200 Day).

Bank nifty is trading below 0 out of 8 SMA’s.

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

Macros

1.Dollar index is @ 97.27

2.Vix is @ 18 (+10.16 %)

3.Brent crude is @ 68.05

4.US 10 years bond yield

Note:
U.S. President Donald Trump on Tuesday signed a spending deal into law, bringing an end to the partial U.S. government shutdown and providing lawmakers additional time to negotiate potential limits on his immigration crackdown. The legislation restores lapsed funding for defence, healthcare, labour, education, housing, and other key agencies, while temporarily extending funding for the Department of Homeland Security until 13th February.

Meanwhile, President Trump’s decision to slash tariffs on Indian imports triggered a relief rally across Indian markets, boosting sentiment among exporters and policymakers, even as detailed terms of the agreement remain limited. On Monday, Trump announced a trade deal with India under which tariffs on Indian goods would be reduced to 18% from 50%, in exchange for India halting Russian oil purchases and lowering trade barriers.

According to Indian government officials, India has agreed to purchase petroleum, defence equipment, and aircraft from the U.S., while partially opening its agriculture sector. New Delhi has also reduced tariffs on imported cars to meet Washington’s immediate demands and agreed to provide zero tariffs on U.S. industrial goods entering the Indian market.

Important Pivot Point Levels for Today                                                                                                                          

Nifty

Bank Nifty

By Ashok Bhandari (RA)

SEBI Regd. No. INH00019549