Trade setup for Feb 9: Will NIFTY50 hold the opening gains on Monday?

Daily Update, Business

GIFT NIFTY futures traded above 200 points higher on Monday morning, signaling a sharp gap-up opening. The trade deal released by the Commerce Minister provided better clarity on profits and losses coming out of the trade deal.

NIFTY50

The NIFTY50 closed the previous week with 1.4% gains as the trade deal with the US bolstered the economic prospects of exports to one of the biggest markets in the world. The tariff rates were reduced from 55% to 18% for major categories and to zero for a few. The gems and jewelry stocks will remain in focus on Monday, as the category now attracts zero tariffs on US exports.

The GIFT NIFTY futures traded over 200 points higher on Monday morning, indicating a sharp gap-up opening.

On the technical front, the NIFTY50 closed above 20 EMA levels of 25,650 levels for the past full week, indicating a strong buyer sentiment at the lower levels after a sharp gain on Tuesday. The 50 EMA trend line is also showing ascending momentum, indicating renewed buyer confidence in the index.

On the options data front, the 25,500 puts hold the highest open interest, indicating a strong support for the coming weekly expiry on 11th February. On the other hand, the 26,000 calls maintain the highest open interest, indicating a strong resistance level for NIFTY50.

Indian equity benchmark indices Sensex and Nifty continued to trade steadily higher on Monday, with gains extending through late morning amid sustained buying across frontline stocks and also the broader market. At 11:06 am, the BSE Sensex was up 495 points, or 0.6 percent, to 84,075, while the Nifty 50 rose 170 points to 25,864. Market breadth further strengthened, with 2,804 shares advancing against 918 declines. PSU banks and metal stocks remained key drivers, led by State Bank of India; FMCG and select defensives continued to lag modestly.

Sky Gold and Diamonds were quoting at Rs 348.00, up Rs 28.50, or 8.92 percent.

It has hit an intraday high of Rs 349.30 and an intraday low of Rs 315.10.

It was trading with volumes of 65,175 shares, compared to its five day average of 32,034 shares, an increase of 103.46 percent.

Stock Market Updates: The 30-share BSE Sensex climbed 441.77 points, or 0.53 per cent, to 84,022.17 in the morning trade.

Mumbai:

Equity benchmark indices Sensex and Nifty opened on a positive note on Monday amid foreign fund inflows, a rally in Asian markets and optimism following a fresh trade deal between India and the US.

The 30-share BSE Sensex rose 441.77 points, or 0.53 percent, to 84,022.17 in the morning trade. The 50-share NSE Nifty rose 129 points, or 0.50 per cent, to 25,822.70.

Among the 30-share Sensex constituents, State Bank of India, Titan, Eternal, Kotak Mahindra Bank, Bharat Electronics Ltd, Tata Steel, Sun Pharmaceuticals, Larsen & Toubro, Adani Ports, IndiGo, Reliance Industries and Bharti Airtel were the winners.

On the other hand, PowerGrid, ITC, Hindustan Unilever, Bajaj Finance, Trent, Infosys, ICICI Bank, Axis Bank, NTPC, Tech Mahindra, Tata Consulting Services, HDFC Bank were among the laggards.

Foreign institutional investors bought equities worth Rs 1,950.77 crore on Friday, according to exchange data.

“A big positive for the market is that FIIs who were sustained sellers in the market have bought in the cash market in three out of the last four trading days. The fact that the derivatives market continues to be heavily net short could impart resilience to the market, on expectations of short covering,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd, said.

He added that the recent ‘Anthropic shock’ will continue to impact sentiments in the IT sector. On the contrary, banking stocks are likely to gather strength on news of improving credit growth, which will have positive fall out for GDP growth and corporate earnings in FY27.

In Asian markets, Japan’s Nikkei 225, South Korea’s Kospi, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index trade higher.

Devarsh Vakil, Head of Prime Research, HDFC Securities said Japan’s governing Liberal Democratic Party, led by Sanae Takaichi secured a decisive victory pushing the Nikkei to record highs.

He noted that Indian equities stand to gain as Japanese capital pivots away from China under Takaichi’s “Economic Security” policy, with billions in FDI expected to flow into Indian infrastructure and technological sectors, he said.

Vakil further told India and the US on Saturday reached an interim trade agreement ending their ten-month tariff war, with Washington reducing tariffs on Indian goods from 50 per cent to 18 per cent.

India successfully protected sensitive agricultural sectors like dairy while committing to purchase $500 billion in US goods over five years, focusing on energy, aircraft, and defense technology.

The deal strategically integrates India into the US-led “Pax Silica” initiative for critical minerals and AI supply chains, positioning India as a counterweight to China in the Indo-Pacific, he has added.

US markets ended more than 2 per cent higher on Friday.

Brent crude, the global oil benchmark, fell 0.94 per cent, to USD 67.41 per barrel.

On Friday, the 30-share BSE Sensex advanced 266.47 points to settle at 83,580.40, while the NSE Nifty rose 50.90 points to end at 25,693.70.

Indian stock benchmarks ended marginally higher on Friday, with the Nifty closing at 25,693. Analysts say markets may remain range-bound in the near term, with stock specific action on the back of earnings outcomes and lingering global concerns.