Market Overview
Nifty 50 and Bank Nifty Trade Setup: The Indian stock market experienced a mixed session on February 5, 2024, with Nifty 50 closing slightly lower at 23,696.30 (-0.18%), while the S&P BSE Sensex ended at 78,271.28 (-0.4%). In contrast, Bank Nifty showed resilience, gaining 0.37% to close at 50,343.05.
Broader indices showed strength, with gains between 0.7% and 1.85%, led by sectors like metals and oil & gas, while FMCG and realty stocks lagged.
With the upcoming RBI Monetary Policy meeting and Q3 earnings reports from major companies, traders should prepare for a volatile session on February 6, 2024.
Nifty 50 Trade Setup by Abhishek Parihar
Support Levels (Buy Zones):
- 23,600 – Strong intraday support level
- 23,500 – Critical support; below this level, long positions should be exited
Resistance Levels (Profit Booking Areas):
- 23,800 – Immediate resistance level
- 23,870 – 24,000 – Higher resistance zone; aggressive profit booking likely
Market Outlook: If Nifty 50 sustains above 23,600, we may see an upward momentum towards 23,800-24,000. However, if the index breaks below 23,500, a sharp decline could follow.
Bank Nifty Trade Setup by Abhishek Parihar
Support Levels:
- 50,000 – Strong base level
- 50,200 – Additional support zone
Resistance Levels:
- 50,600 – Immediate hurdle for further upside
- 50,750 – 51,000 – Higher profit-booking zone
Market Outlook: Bank Nifty’s strength above 50,000 could push it towards 50,750-51,000. Any dip below 50,000 may lead to a bearish reversal.
Key Events to Watch
- US Services PMI Data – Could impact global market sentiment.
- Bank of England’s Interest Rate Decision – May influence foreign fund flows.
- Q3 Earnings Releases:
- Bharti Airtel, SBI, ITC, Trent, Britannia, Hero Motocorp, BSE
- Sectoral performance will determine further market direction.
Top Stock Picks for February 6, 2024 by Abhishek Parihar
1. Apollo Hospitals Enterprise Ltd (BUY)
- Current Market Price (CMP): ₹6,944
- Buy Above: ₹6,944
- Stop Loss: ₹6,700
- Target: ₹7,430
- Analysis: The stock is near a breakout with strong volume. A move past ₹6,944 can lead to bullish momentum towards ₹7,430.
2. eClerx Services Limited (BUY)
- CMP: ₹3,286.90
- Buy Above: ₹3,286.90
- Stop Loss: ₹3,172
- Target: ₹3,315
- Analysis: The stock has broken a falling trendline, indicating a potential uptrend. Sustaining above ₹3,323 could see it testing ₹3,315.
3. The Ramco Cements Limited (BUY)
- CMP: ₹900
- Buy Above: ₹900
- Stop Loss: ₹884
- Target: ₹925
- Analysis: Strong support at ₹884 and a bullish reversal pattern indicate an upward target of ₹925.
4. Adani Ports and Special Economic Zone Ltd (BUY)
- CMP: ₹1,145
- Buy Above: ₹1,145
- Stop Loss: ₹1,120
- Target: ₹1,177
- Analysis: The stock is rebounding from key support at ₹1,120. If sustained, it may head towards ₹1,177.
5. ITC Ltd (BUY)
- CMP: ₹448
- Buy Above: ₹448
- Stop Loss: ₹440
- Target: ₹475
- Analysis: A bullish reversal pattern suggests ITC could climb towards ₹475 in the short term.
Short-Term Picks by Abhishek Parihar
1. Laurus Labs
- CMP: ₹631
- Stop Loss: ₹610
- Target: ₹656
2. MCX
- CMP: ₹6,096
- Stop Loss: ₹5,900
- Target: ₹6,500
Final Thoughts by Abhishek Parihar
With multiple macroeconomic events lined up and earnings from heavyweight companies, traders should adopt a cautious yet strategic approach. Key levels in Nifty 50 (23,500-23,800) and Bank Nifty (50,000-50,600) should be closely monitored to make informed trading decisions.
Risk Management Tip: Always use stop-loss orders to minimize downside risk and book profits at key resistance levels.
Would you like to receive daily trade setups? Stay tuned for more insights!
You might also like to read: Investment Options in India: A Comprehensive Guide to Risk and Return
