Nifty prediction tomorrow, Feb 10 (Expiry): Bulls eye 26000 breakout; check support, resistance, OI data, RSI, PCR

Nifty Prediction For Tomorrow By Experts, Expiry February 10: Indian stock market indices Nifty 50 and Sensex extended their gains for the second session today (Monday, Feb 9). The surge was driven by optimism over the India-US trade deal and strong buying in PSU bank and consumer durables shares. The NSE Nifty index jumped 173.60 points or 0.68 per cent to end at 25,867.30. In intraday, the index climbed 228.55 points or 0.88 per cent to make a high of 25,922.25. It made a low of 25,780.90. Likewise, the BSE Sensex rallied 485.35 points or 0.58 per cent to close at 84,065.75.

On the sectoral front, the buying interest was widespread, with Nifty PSU Bank emerging as the gainer, up 3.3 per cent. The Nifty Realty surged 2.6 per cent, Nifty Metal gained 1.5 per cent and Nifty Pharma added 1.5 per cent.

The Nifty Bank index closed at 60,669.35, up 548.80 points or 0.91 per cent.

In the broader market, Nifty Midcap and Nifty Smallcap also posted notable advances. The Nifty Midcap 100 settled 1.58 per cent higher while the Nifty Smallcap gained 2.64 per cent.

From Nifty 50 pack, 34 stocks gained and 16 declined. SBI was top gainer as it zoomed 7.6 per cent on the back of strong Q3 results. It was followed by Shriram Finance, Grasim Industries, Titan, Dr Reddy's, UltraTech Cement, Hindalco, TMPV, Tata Steel, Eternal, BEL, SBI Life, Cipla, Kotak Mahindra Bank, Trent, Adani Enterprises, M&M, L&T and Apollo Hospitals.

On the other hand, Max Healthcare fell nearly 3 per cent, followed by NTPC, ITC, ONGC, ICICI Bank, Infosys, Nestle India, Coal India, Wipro, HDFC Bank, Maruti, Tech Mahindra, Power Grid, Bajaj Finance and Axis Bank.

Foreign institutional investors (FIIs) bought equities worth Rs 2,254.64 crore on Monday, according to exchange data. DIIs also purchased shares of just Rs 4.15 crore.

Vinod Nair, Head of Research, Geojit Investments, said that positive signals from India-US trade deal, coupled with the return of FIIs, fuelled a risk-on sentiment in the market. Investors are closely watching upcoming results, with PSU banks delivering stronger-than-anticipated performance, helping the PSU bank index outperform.

"The recovery was broad-based, with sectors such as cement, capital goods, textiles, and consumer discretionary attracting investor interest, supported by union budget proposals and favourable trade deals," he said.

Nifty Support And Resistance Tomorrow, Expiry

Nifty kicked off the week strongly as market sentiment was lifted by India-US trade deal that includes tariff reductions and deeper economic cooperation. The index closed near the day's high. NSE cash market volumes were higher by 6 per cent compared to last trading session.

Ajit Mishra, SVP, Research, Religare Broking, said that Nifty's latest move suggests that it could retest 26,000 soon. A decisive breakout above 26,000 could open the path toward a new record high.

"A buy on dips approach is suggested in the current market set up, with emphasis on stock selection based on sectoral strength," he said.

Nandish Shah, Deputy Vice President, HDFC Securities, said that Nifty has partially filled the prior gap range of 25108-25641 and it has firmly resumed its uptrend. The index is holding above all key moving averages, backed by bullish MACD and RSI turns on daily/weekly charts.

Nifty's short-term resistance looms near 26000, the expert said. If Nifty gives a break above 26000, it will trigger a fresh buying and drive the index toward fresh all-time highs beyond 26373. On the downside, the 25,450–25,500 zone remains a strong support, the expert added.

Rupak De, Senior Technical Analyst at LKP Securities, said that Nifty has broken above the resistance at 25,700, paving the way for further upside. The sentiment looks positive, with the index reclaiming its 50-DMA.

"In the short term, Nifty may move towards higher levels, with initial resistance placed at 26,000–26,200. On the lower end, support is placed at 25,650," the expert said.

On the daily chart, Nifty has formed a small red candle with gap up opening. According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, Nifty has bounced back smartly and sustaining above the hurdle of 25800 levels.

"The opening upside gap of 3rd Feb is still open partially and that has been added with Monday's up gap. This is positive indication and signals a formation of bullish runaway gap, which are normally formed in the middle of uptrend," he said. "The underlying trend of Nifty remains positive. The next upside levels to be watched around 26000 and 26350 in the near term. Nifty has immediate support is placed at 25700," the expert added.

Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research), Centrum Broking, said that Nifty has formed a Doji candle, indicating indecision among market participants. The index also reclaimed its 50-DMA placed around 25,795, which is likely to act as immediate support.

"The overall structure of Nifty appears positive, with an upside potential towards 26,000, a decisive break above this level could trigger short covering and lead the index towards 26,200," the expert said.

He said that Nifty's Momentum indicators remain supportive, with the MACD already signaling a buy crossover and the RSI sustaining above the 50 level.

Nifty Call writers have aggressively added fresh positions at at-the-money and nearby strikes. A significant open interest build-up of around 2.01 crore contracts was seen the 26,000 Call, which makes it a strong resistance.

On the other hand, Nifty Put writers added nearly 1.49 crore contracts at the 25,800 strike, which makes it an immediate support.

Nifty's Put–Call Ratio (PCR) has jumped sharply to 1.05, reflecting improving sentiment.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)