The Indian stock market will have unpredictable price movements during the week which starts on February 9 because technical indicators show that the main market indexes will experience a period of consolidation. Sudeep Shah who leads Technical Research and Derivatives at SBI Securities believes that stock market activity will focus on specific stocks while investors will find opportunities among major companies.

Nifty Outlook

The Nifty50 experienced extreme price fluctuations during the previous week which resulted in a 1,662-point price movement that marked the highest weekly range since June 2024 because investors faced increased uncertainty about market conditions.

The Union Budget day saw volatility increase sharply when the index reached an intraday minimum of 24,571 because traders feared the proposed security transaction tax (STT) increase on futures and options. The decline ended quickly because international market conditions improved after US President Donald Trump declared an immediate reduction of reciprocal tariffs on Indian goods from 25 percent to 18 percent. The development caused Nifty to rebound strongly which reached its highest point of the day at 26,341.

The rally could not maintain its upward movement. The index experienced significant profit taking at elevated price levels which included an abrupt decline of almost 600 points that occurred within minutes after the market opened on one day. Nifty faced difficulties maintaining its position above crucial resistance points because investor confidence remained weak despite positive global market indicators.

The index started moving into a period of sideways consolidation as the week continued. The information technology sector experienced heavy selling which restricted overall market growth because traders feared upcoming artificial intelligence developments would harm the industry. The Nifty IT index finished the week as the least successful sector which experienced a decline close to 7 percent.

The technical analysis indicates that momentum indicators forecast a continuation of the current consolidation period until the market establishes a new direction. Nifty immediately receives its support at the 25,500–25,550 region which follows the 25,200 support point. The resistance level exists between 25,850 and 25,880. A sustained breakout above 25,880 could lead to a market movement which will reach 26,000 and then 26,200 within the upcoming period.

Bank Nifty Outlook

Bank Nifty achieved a new record high of 61,764 during the week which demonstrated persistent demand for banking stocks. Traders who took profits at high price levels caused the index to drop during the second part of the week. The index closed the week at 60,120 which resulted in a weekly gain of almost 3 percent.

Bank Nifty created a bullish candle on the weekly chart which showed high volatility throughout the day while selling pressure increased at upper price levels. The index remains above all significant moving averages which demonstrates that the medium-term upward trend continues to gain strength.

Momentum indicators that show ongoing movement have now started to show flat performance patterns which indicate an upcoming consolidation period. The 20-day exponential moving average (EMA) at the 59,600–59,500 range will function as a major support level. The area between 60,400 and 60,500 serves as an important resistance point. The market will experience bullish momentum when prices break above 60,500 which will lead to a market move that reaches 61,200 and further increases to 62,000.

Top Stock Recommendations

Bajaj Finance
Bajaj Finance achieved a major price breakout which exceeded its previous consolidation range because of strong trading volume. The stock shows increasing positive momentum through its momentum indicators and trend indicators which show better price performance. Stock analysts suggest investors should purchase shares of the company between ₹980 and ₹985 while maintaining a stop loss position at ₹955. The stock is expected to reach ₹1,050 during short-term trading.

Larsen & Toubro
Larsen & Toubro has shown strong recovery from its 200-day EMA which signals a shift towards positive market trends. Technical indicators show that the stock price is gaining momentum because the general infrastructure sector is showing strength. Investors should purchase shares of the company between ₹4,065 and ₹4,075 while maintaining a stop loss position at ₹3,945. The stock may move toward ₹4,355 in the near term.