The NIFTY50 kicked off the week on a high note, surging nearly 0.7% on Monday, February 9, and closing decisively above the 25,800 mark. This upward momentum was fueled in large part by the finalisation of the India–US interim trade agreement, which gave investor sentiment a welcome boost. Foreign institutional investors (FIIs) continued their buying spree for the fourth straight session, pumping in a net ₹2,222 crore into the market.
Despite the bullish push, traders are keeping a close eye on the 26,000 resistance level, which has emerged as a crucial barrier for today’s expiry. Options data shows the highest open interest at the 26,000 call strikes, underlining the significance of this ceiling. On the flip side, the 25,800 puts hold the highest open interest, making it a strong support level and indicating that the market is currently sandwiched between these two zones.
Technical Signals: Bullish Patterns and Volatility
Monday’s session was marked by volatility, but the NIFTY50 managed to post a bullish hammer candlestick pattern, with a long wick suggesting renewed buying after intraday swings. Structurally, the index continues to form higher lows and remains above its key moving averages, pointing to sustained accumulation on market declines. The put-call ratio (PCR) climbed above 0.7, indicating traders are selling more puts than calls—a classic signal of growing bullish sentiment.
Bank Nifty and Trading Strategies
Meanwhile, the Nifty Bank index displayed its own brand of resilience, notching up nearly a 1% rally and closing strong after a gap-up opening. However, the session ended with a bearish candle with a lower shadow, hinting at consolidation near the upper Bollinger Bands. Aggressive traders are eyeing opportunities both ways: buying Nifty Bank above 61,000 for targets up to 61,500, with a strict stop loss at 60,400, or selling in the 60,875-61,000 range for downside targets.
For the NIFTY50, market expert Anil Singhvi of Zee Business sees support emerging at 25,700–25,815, with a strong buy zone at 25,575–25,650. On the flip side, a sell-on-rise approach is suggested in the 25,975–26,125 band, with a stop loss at 26,250.
Overall, the derivatives setup points to controlled consolidation with an upward bias, as traders await a decisive breakout above the 26,000 resistance. Until then, a disciplined, selective approach—favoring buy-on-dips—appears prudent as the market navigates this pivotal zone.
