The markets remained in a really outlined buying and selling vary and stayed decisively under key ranges. The buying and selling vary widened a bit; the Nifty oscillated in 449.45 factors earlier than closing in direction of its decrease finish of the vary. The volatility elevated; the India VIX inched greater by 6.33% to 16.75 and stayed at elevated ranges.
Whereas not exhibiting any main reversal makes an attempt, the benchmark index closed with a web weekly lack of 111 factors (-0.48%).

The approaching week might be a 6-day buying and selling week. Each NSE and BSE shall conduct a particular full-day buying and selling session on Saturday, February 1, 2025, on account of the presentation of the Union Funds.As we begin a brand new week, you will need to observe that the markets stay decidedly under key ranges. The Nifty Index is considerably under its 200-day shifting common (200-DMA), which is located at 23,984. Moreover, a Dying Cross sample has shaped on the every day charts because the 50-day shifting common (50-DMA) has crossed under the 200-DMA. On the weekly charts, we’re additionally under the 50-week shifting common (50-WMA) positioned at 23,711. Consequently, even essentially the most sturdy technical rebounds, ought to they happen, are prone to encounter resistance across the 23,700 stage and better.
In abstract, so long as the Nifty stays under the 23,500-23,650 vary, it’s going to seemingly be prone to profit-taking at elevated ranges.
The approaching week is predicted to see the degrees of 23325 and 23500 appearing as potential resistance factors. The helps are available in at 22900 and 22650.
The weekly RSI stands at 40.71; it stays impartial and doesn’t present any divergence towards the worth. The weekly MACD is bearish and trades under the sign line.
The sample evaluation of the weekly charts reveals that the Nifty is now decisively under the 50-week MA positioned at 23711. This implies the important thing resistance stage has been dragged decrease so far, even from a medium-term horizon. Whereas the Nifty breached the 50-week MA, it additionally slipped under the help of the rising pattern line sample, as evidenced on the chart.
General, the markets will seemingly commerce with a weak undertone over the fast short-term. We’re prone to see ranged markets with weak undercurrents via the week.
Nonetheless, we’ll seemingly see immense volatility on Saturday as we head into the Union Funds on February 1. The markets may even see some risk-off sentiment taking part in out; that is prone to see the historically defensive sectors like IT, Pharma, FMCG, and so on., doing properly.
We may also see some Funds-driven motion in a couple of choose pockets. The markets shall totally digest the Funds the week after this one. It’s strongly advisable to be very mild on positions and hold leveraged exposures at modest ranges. A extremely cautious view is suggested for the approaching week.
In our have a look at Relative Rotation Graphs®, we in contrast numerous sectors towards CNX500 (NIFTY 500 Index), which represents over 95% of the free float market cap of all of the shares listed.


Relative Rotation Graphs (RRG) present a scarcity of management within the sectoral setup. The Nifty Realty, Banknifty, Monetary Providers Index, and the Midcap 100 Index are contained in the main quadrant. Aside from the Midcap 100 Index, the remainder are exhibiting a decline of their relative momentum. Nonetheless, these teams are prone to outperform the broader markets comparatively.
The Nifty IT index has rolled contained in the weakening quadrant. Nonetheless, stock-specific efficiency could also be seen from this house. The Nifty Pharma and the Providers Sector Indices are additionally contained in the weakening quadrant.
The Nifty Metallic, Media, PSE, Vitality, FMCG, Consumption, and Commodities Indices are contained in the lagging quadrant. Most of those sectors are exhibiting sharp enchancment of their relative momentum.
The Nifty Auto has rolled contained in the enhancing quadrant. The Nifty Infrastructure and the PSU Financial institution Indices are additionally contained in the enhancing quadrant. Nonetheless, the PSU Financial institution Index is seen sharply giving up on its relative momentum.
Necessary Notice: RRGTM charts present the relative power and momentum of a gaggle of shares. Within the above Chart, they present relative efficiency towards NIFTY500 Index (Broader Markets) and shouldn’t be used instantly as purchase or promote alerts.
Milan Vaishnav, CMT, MSTA, is a Consulting Technical Analyst and founding father of EquityResearch.asia and ChartWizard.ae and relies in Vadodara. He could be reached at milan.vaishnav@equityresearch.asia