The Nifty ended its two-session winning trend on Thursday, closing below the 50 DMA for the third consecutive session amid broad-based selling. According to reports from The Economic Times, financials, auto and IT sectors were among the major laggards during the session. Rupak De, Senior Technical Analyst at LKP Securities, noted that Nifty ended the session on a negative note, indicating short-term pressure. However, the index has managed to hold above the 20 EMA for the last three days, suggesting that the near-term range may remain tight. The Nifty closed at 25,642.80, down 133.20 points or 0.52%, while the BSE Sensex fell 503.76 points, or 0.60%, to settle at 83,313.93. The India VIX ended at 12.17, down 0.7% from the last closing, indicating that volatility has eased slightly.
As reported by The Economic Times, the daily RSI continues to remain in positive territory, while the 25,480–25,500 zone remains a crucial support for the index. Any pullback towards 25,875 is likely to face selling pressure, according to De's analysis. The index appears to be range-bound in the near term, while select individual stocks may outperform. Rajesh Bhosale, Technical Analyst at Angel One, noted that Nifty has entered a consolidation phase with prices moving within a defined range after a sharp two-sessions jump. He emphasized that the index continues to trade above all key moving averages, while the RSI remains in positive territory above the 50 mark, indicating that the broader trend remains positive. The current phase appears to be a healthy cooldown after the sharp gap-up of Tuesday (1200 points), with the next momentum trigger likely post the RBI policy announcement.
According to technical analysis from Bonanza Portfolio, Prime Focus is recommended as a buy at ₹267.4 with an upside potential of 9% and a stop loss at ₹255. The stock has posted a consolidation range breakout with strong volume, indicating renewed buying interest. Trend confirmation comes from price trading above all major EMAs (20, 50, 100, and 200), signaling short-term and long-term bullishness. The RSI at 68 is well above its 14-period average of 52.6, suggesting continued strength and upside momentum in the near term, making it suitable for Friday trading recommendations.
As reported by Bonanza Portfolio, Marico is recommended as a buy at ₹748.3 with an upside potential of 7% and a stop loss at ₹722. The stock has broken out of its falling trend line with strong volume, indicating a potential trend reversal. The move is well supported as the price is trading above all major EMAs (20, 50, 100, and 200), confirming short-term and long-term bullish strength. Momentum is improving with RSI at 53.91, trading above its 14-period average of 45.45, suggesting growing buying interest and scope for further upside continuation, making it a compelling choice for Friday trading opportunities.
According to ETMarkets.com, 75 stocks hit their 52-week highs while 92 stocks slipped to their 52-week lows on Thursday. Among the stocks that hit their 52-week highs included Adani Ports, APL Apollo Tubes, Bharat Forge, Force Motors, IOC, Jindal Steel, Prime Focus and SMT Engineering. However, Bharti Airtel, ICICI Bank and RIL were among the large cap names that witnessed significant selling pressure, dragging the markets the most. Out of the 4,342 stocks that traded on the BSE on February 5, Thursday, 1,690 stocks witnessed advances, 2,504 saw declines while 148 stocks remained unchanged. The breadth stayed negative in broader markets, with action in heavyweights like Bharti Airtel, ICICI Bank and RIL being the primary drag on market performance.
