MARKET SUMMARY
Indian markets are set to open firmly, aiming for a fourth consecutive session of gains. GIFT Nifty is up by approximately 90 to 93 points, indicating a Nifty level above 25,900. This momentum is supported by sustained foreign institutional investor (FII) buying and positive cues from Asian markets. Traders should consider quick entries on dips towards the 25,790 support level for intraday momentum opportunities.
KEY DRIVERS
– Global markets are rebounding, with US indices like the Dow nearing the 50,000 milestone and the S&P 500 rising over 2% last week. Asian markets, including the Nikkei, are also experiencing record highs, fueled by trade optimism. If GIFT Nifty holds above 26,000, there could be potential for further upside.
– FIIs net bought ₹69 crore on February 10, marking a third consecutive session of buying, which countered domestic institutional investor (DII) sales. Retail investors remain bullish in mid and small-cap sectors. Monitoring these flows is crucial for a sustained breakout above the 26,300 resistance level.
– Positive earnings reports, such as SBI’s Q3 profit increase and Tata Steel’s turnaround, are encouraging. IREDA’s ₹2,994 crore qualified institutional placement (QIP) adds positive sentiment in the renewable energy sector, making these stocks attractive for momentum trades.
– The India VIX has decreased by 4.6% to 11.66, indicating reduced market fear. The softening of crude prices further aids sentiment, suggesting opportunities for scaling into long positions.
SECTORS TO WATCH
– Banking, led by an SBI rally, metals with Tata Steel’s surge, and renewables due to IREDA’s fundraising are sectors to watch. Buying on dips with targets at recent highs is advisable.
– Exercise caution with the IT sector, which showed mild pre-open dips like those in Wipro, and select defensive stocks. These sectors should be avoided until Nifty decisively clears 26,000.
EVENTS
– The MSCI February 2026 rebalance includes Aditya Birla Capital and L&T Finance, while IRCTC is removed. This may cause volatility, so track pre-open action on NSE/BSE for arbitrage opportunities.
– There are no major data releases today. Focus will be on Q3 earnings reactions and FII data post-market.
RISKS
– A breakdown below 25,790 could lead to testing of 25,615 or 25,500, so maintaining tight stops is essential amid global volatility.
– If US yields spike or commodities experience swings, FII caution could emerge, and DII selling might limit upside potential.
CLOSING NOTE
Stay agile with a bullish bias intact, but consider booking profits near the 26,300 level. It is an opportune time for dip-buying in stocks like SBI.