Trade Setup for February 5: Will Nifty move towards 24,050 and higher now?
Foreign institutional investors switched to net buying status on Tuesday after 23 continuous sessions of net selling. FIIs purchased ₹809 crore worth of assets on February 4.
Trade Setup for February 5: Will Nifty move towards 24,050 and higher now?
US futures rebounded from lower levels overnight because of the US tariff pause decision which established a favorable outlook for Asian markets the next morning. The share market today recorded a significant move because of positive signals.
An upward gap of 150 points appeared at the opening of the Nifty 50 index followed by continued market ascent during most of the session. Investors seized buying opportunities during the intraday which propelled the market to finish at its highest point in the past month.
The Nifty delivered a strong upward breakout following a small recovery from Monday's low values. Nifty reclaimed its 23,700 level while the Sensex today surpassed 78,500. The Sensex rose by 1,397 points to finish at 78,584 while the Nifty went up 378 points to reach 23,739.
The trade setup experienced its strongest performance since the initial week of January. Both Sensex and Nifty recorded positive growth for 2025 with nearly 2% increases.
The upward movement in the market included a broad range of stocks as over 40 of them ended higher. The market capitalization of BSE-listed companies surpassed ₹5 lakh crore.
The rally received contributions from every major sector while energy stocks along with banking and metals led the overall market gains.
The stock market today demonstrated strong breadth as mid and small-cap shares shared in the upward market movement. The Nifty Midcap 100 index moved up by 1.56% while the Smallcap 100 index posted a gain of 1.09%.
The titan share price rose by 2.72% to finish at 8,944.55 as public sector enterprises demonstrated strength while PSU Bank and Infrastructure indices gained 2.41% and 2.40% respectively.
Rupak De from LKP Securities observed that the Nifty's upward movement came from a falling wedge pattern retest which suggests a probable short-term rally. The index remains above the critical 21EMA on the daily timeframe. The RSI demonstrates strong momentum through a bullish crossover while rising from a base on the daily timeframe.
