Nifty and Bank Nifty Daily Analysis – 07 February 2025

Good morning, traders!

Yesterday, Nifty declined by 0.39%, while Bank Nifty gained 0.8%, reflecting mixed market sentiment.

Nifty Analysis

• Nifty opened with a gap-up but lost momentum within the first hour, trading within a range.
• It faced rejection from the 23700 – 23800 zone, maintaining its resistance level.
• Open Interest (OI) Data:
  
  
  
  • PCR: 0.8 overall and 0.75 around ATM, indicating a neutral stance.
  • Support: 23500
  • Resistance: 23600 and above
  • Nifty 50 Futures OI: Increased by 0.9%, showing a short buildup.
• Market View: Neutral to bearish; a breakout above 23800 is needed to change the outlook.

Bank Nifty Analysis

• Bank Nifty remained strong, aligning with our bullish outlook.
• Open Interest (OI) Data:
  • Nifty Bank Futures OI dropped by -2.39%, indicating short covering.
• Market View: Bullish bias continues unless major resistance levels are broken.

Key Market Event to Watch

With the RBI MPC meeting today, expect increased volatility. A 25-basis point rate cut is speculated, but confirmation will come only post-announcement.

Trade cautiously and focus on risk management.
Let’s see how the market unfolds today! 🚀