Bajaj Broking - Closing Market Commentary for 05th February 2026

Benchmark indices Sensex and Nifty ended lower on February 5th, snapping a three-day winning streak amid weak global cues and weakness in selective metal stocks. The market witnessed profit-booking after the recent rally triggered by optimism over the India-US trade deal. Trading remained volatile as the session coincided with the Sensex derivatives expiry. Investors remain cautious on account of RBI monetary policy meet due on 6th Feb. At the close, the Sensex declined 503.76 points, or 0.60%, to 83,313.93, while the Nifty fell 133.20 points, or 0.52%, to 25,642.75.

The sell-off was broad-based, with pressure seen across segments. The Nifty Midcap 100 index slipped 0.28%, while the Nifty Small-cap 100 index dropped 1.29%. Sectorally, metals, capital goods, auto and consumer durables continued to drag, all trading around 0.5-1 percent lower. Defensive pockets such as healthcare and PSU Banks were marginally positive to flat, but gains were insufficient to offset losses elsewhere.

Nifty Outlook

The index formed a bearish candle which remained contained inside previous session high-low range signaling consolidation with corrective bias ahead of the RBI monetary policy outcome. In the coming sessions key levels to watch out for is 25450-25400 being the confluence of the last week high and 20 days EMA. Holding above the support area will keep the overall bias positive and will open upside towards 25,850 and 26,000 levels in the coming weeks.

Volatility is likely to remain elevated amid uncertain global cues and the upcoming RBI monetary policy announcement. We believe the current breather should be viewed as a buy-on-dips opportunity, with strong support firmly placed around the 25,000-25,200 marks being the confluence of the 200 days EMA and 80% retracement of the current up move.

Bank Nifty Outlook

Bank Nifty formed a small bear candle which remained contained inside previous session price range signaling consolidation amid stock specific action around the 60,000 levels ahead of the RBI monetary policy outcome. Index has immediate support at 59500-59200 levels being the confluence of the 20- and 50-days EMA. Index holding above the support area will keep the bias positive and will open upside towards 60,700 and 61,200 levels in the coming weeks. Volatility is likely to remain elevated amid uncertain global cues and the upcoming RBI monetary policy announcement. Key short-term support is placed in the 58,500-58,000 zone being the confluence of the 100 days EMA and the bullish gap area of Tuesday.

Source : Equity Bulls

Keywords

BajajBroking Sensex Nifty WeakGlobalCues