February 06, 2024 / 09:11 AM IST
Sensex Today | Mandar Bhojane, Research Analyst at Choice Broking:
The benchmark Sensex and Nifty indices are likely to open on a negative note on February 6, as indicated by trends in the GIFT Nifty, suggesting a lower start for the broader index with a loss of 31.50 points.
The Nifty index has formed a double top pattern on the daily chart, signaling a potential cautious stance for traders. The resistance level is identified at 22,200, and a decisive break above this on a closing basis could invalidate the bearish outlook. Conversely, the support for the index is situated at 21,600, coinciding with its 20-day moving average (20 DMA). A breach below this support level might intensify selling pressure in the market.
The Bank Nifty index is currently in a bearish territory, encountering formidable resistance at 46,500. The index’s immediate support is positioned at 45,500, and a breach below this level is anticipated to trigger additional selling pressure. The index persists in a “sell on rise” mode unless it convincingly surpasses the 46,600 mark on a closing basis.
Foreign institutional investors (FIIs) net bought shares worth Rs 518.88 crore, while domestic institutional investors (DIIs) sold Rs 1,188.68 crore worth of stocks on February 5, provisional data from the NSE showed.
