Stock Market Technical Analysis | 2 to 6 Feb 2026 Weekly Wrap

Markets staged a strong rebound last week with broad-based buying and falling volatility. Is this the start of a sustained uptrend or just a tactical bounce?

Expert recommendation by:

• Mr. Ketan Kaushik - Derivative Analyst

Equity

• Benchmark Index traded volatile in the previous week before closing with 3.50% gain at 25694 level. Banking Index lagged the benchmark index as it
  closed with 2.92% gain at 60121 level.
• Among the Nifty constituents, POWERGRID and ADANIENT outperformed the benchmark index as they closed with 14.13% and 10.20% gains while INFY and TECHM underperformed as they closed with 8.16% and 7.07% cut respectively. Among the Bank Nifty constituents ICICIBANK outperformed the
  benchmark index as it closed with 3.77% gain while BANKBARODA underperformed the benchmark index as it closed with 3.41% cut.
• Among sectors, NIFTYREALTY index outperformed the benchmark index during the previous week as it closed with 7.73% gain while NIFTYIT index underperformed as it closed with 6.91% cut. MIDCAP index outperformed the benchmark index as it closed with 4.17% gain while SMALLCAP index lagged the benchmark index as it is closed with 3.17% gain.
• Volatility index (India VIX) closed with 21.14% cut at 12.01 level.
• Both, FII and DII were net buyers as they bought stocks worth Rs 3,234 Cr and 3,575 Cr respectively during the previous week in the cash segment.
• Globally, equity markets traded with positive bias as US market (DJIA) and European market (STOXX 600) closed with 2.50% and 1.00% gains respectively.

Derivatives

• Derivatives data for Nifty suggest max OI addition at 25600 call and 25500 put with max OI at 27000 call and 25500 put side (10th Feb expiry). Nifty
  cumulative PCR closed at 0.96 for Feb 06.
• Derivatives data for Bank-nifty suggest max OI addition at 61300 call and 59500 put with max OI at 60000 for both side call and put side (24th Feb expiry). Bank-nifty cumulative PCR closed at 0.96 for Feb 06.

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Performance:

Indices

Source: NSE

Sector Gainers/Losers

Source: NSE

FII / DII ACTIVITY (WEEKLY)

Source: NSE

SUPPORT/RESISTANCE LEVEL FOR UPCOMING WEEK

Source: NSE

DAILY EXPONENTIAL MOVING AVERAGE

Source: NSE

TECHNICAL OUTLOOK

NIFTY (WEEKLY)

• Benchmark index traded volatile in the previous week and closed with bullish candlestick formation on the weekly chart
• Benchmark index is likely to trade volatile in the coming week
• Benchmark Index has support at 25,300–25,100 level and resistance at 26,100–26,300 level

BANKNIFTY (WEEKLY)

• Banking index lagged the benchmark index and closed with bullish candlestick formation on the weekly chart
• Banking index is likely to trade in line with the banking index in the coming week
• Banking index has support at 59,000-58,500 and resistance at 61,200 -61,700 level

FINNIFTY (WEEKLY)

• FINNIFTY index outperformed the banking index and closed with bullish candlestick formation on the weekly chart
• FINNIFTY is likely to trade in line with the banking index in the coming week
• FINNIFTY has support at 27,300-27,100 level and resistance at 28,300-28,500 level.

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Market FAQs – Weekly Summary

1. What drove the market rally last week?

The rally was supported by broad-based buying, strong gains in Realty and Midcaps, falling volatility (VIX down 21%), and net buying by both FIIs and DIIs, indicating improved risk appetite.

2. Which sectors outperformed and underperformed?

Nifty Realty emerged as the top performer with a 7.73% gain, while the IT sector underperformed, declining 6.91%. Stock-specific strength was seen in PowerGrid and Adani Enterprises.

3. What does derivatives data indicate for Nifty?

Maximum open interest at 25,500 put suggests strong support, while heavy call OI at 27,000 indicates resistance. A PCR of 0.96 reflects improving sentiment but a likely range-bound trend.

4. What is the outlook for Bank Nifty?

Bank Nifty closed at 60,121 with mixed participation. OI concentration around 60,000 suggests consolidation, with directional clarity expected on a breakout above 61,300.

5. What should investors watch in the coming week?

Key factors include FII flows, global market cues, sector rotation, and Nifty’s ability to sustain above the 25,500 support zone amid improving risk sentiment.

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