The Indian stock market witnessed intense volatility on Monday, 02 February 2026, and Nifty Future behaved exactly as anticipated. The index traded within a wide intraday range of nearly 400 points, making it a difficult session for traders who relied solely on static price levels.
Such high-volatility days demand flexibility, patience, and a strong understanding of trend behaviour. Intraday trading during this session was challenging, as sudden price swings repeatedly tested stop-loss levels and punished impulsive entries.
Nifty Future Price Action on 02 February 2026
The early part of the session lacked clear direction. Sharp moves on both sides created false signals, and trades based purely on support and resistance levels carried a higher probability of failure. In fact, the first two potential trade opportunities would have resulted in stop-loss hits if taken mechanically.
Given the unpredictable price action, greater emphasis was placed on trend identification and moving average behaviour. This shift helped avoid unnecessary trades during the most volatile phase and allowed the market to reveal its true intent gradually.
Post 12 PM, market structure improved significantly. At that point, price action, trend direction, and moving averages aligned on the long side. This alignment created a high-probability intraday trade opportunity. With a defined risk of approximately 50 points, the trade delivered a reward exceeding 100 points, offering a favourable risk-to-reward ratio.
This trade highlighted a critical lesson for traders: during volatile market conditions, waiting for confirmation often produces better results than frequent trading attempts. One well-executed trade can outperform multiple low-quality setups.
Why Patience Matters in Volatile Markets
Monday’s session reinforced the importance of patience in trading. Patience is not just an emotional quality but a strategic tool. In difficult market environments, traders must rely on indicator combinations rather than isolated signals. Trend and moving average confirmation becomes essential to navigate uncertainty and protect capital.
As volatility remains elevated, such structured approaches will continue to play a vital role in consistent trading performance.
Nifty Spot Market Overview
On the broader market front, Nifty Spot closed at 25,088, registering a gain of approximately 1.06 percent from the previous close. While the recovery offered short-term relief, the index continues to trade well below its 200-day exponential moving average.
This keeps the medium-term market structure under pressure. The current bounce could be a result of short covering from oversold levels rather than a confirmed trend reversal. The daily chart still appears weak, and bulls will need sustained buying momentum to move the structure towards neutrality.
One concerning factor for market participants remains the recent Securities Transaction Tax hike. The move, intended to increase revenue by around ₹10,000 crore, coincided with an estimated erosion of nearly ₹10 lakh crore in overall market capitalisation. The long-term impact of this policy decision remains a topic of debate.
Nifty Future Trading Strategy for Tuesday, 03 February 2026
Based on current technical structure and market handover, traders should remain prepared for both directional scenarios.
On the long side, if Nifty Future trades decisively above the 25,159 level, a long trade can be considered. In this setup, a stop-loss of 50 points and a target of 100 points offer a favourable risk-to-reward ratio. The nearest visible resistance on the chart is placed around the 25,425 zone.
On the short side, if Nifty Future opens with a gap down or fails to sustain above 25,079 and trades below this level, a short trade becomes relevant. In this scenario, maintaining a stop-loss of 50 points with a target of 100 points is advisable. Immediate support is expected near 24,962, followed by a stronger support area around 24,800.
Traders are advised to wait for confirmation and avoid overtrading, especially during the opening volatility.
Global and Geopolitical Updates Impacting Markets
Global developments over the last 24 hours continue to influence market sentiment. India announced its Union Budget for the fiscal year 2026–27, focusing on growth amid global uncertainty. The budget outlined a fiscal deficit target of 4.3 percent of GDP and maintained a strong emphasis on capital expenditure and long-term investments. Growth is projected in the range of 6.8 to 7.2 percent, and markets are evaluating the broader macroeconomic implications.
India’s rising role in the global economy was also highlighted, with IMF projections placing India among the top contributors to global growth. This reinforces India’s strategic importance at a time when global trade patterns are shifting.
International business organisations, including the US-India Business Council, welcomed the budget, citing its potential to strengthen trade and investment ties despite ongoing global challenges.
At the same time, geopolitical risks were acknowledged, particularly concerns around weakening multilateral systems and global trade uncertainty. These factors continue to shape policy decisions and market expectations.
Outside India, the UK manufacturing sector showed resilience, with January 2026 PMI data reaching its highest level in over a year. This indicates selective strength in parts of the global economy, even as uncertainty persists.
Conclusion
The market is currently navigating a phase of high volatility, mixed global cues, and evolving domestic policy influences. In such conditions, disciplined risk management, patience, and confirmation-based trading remain essential for success.
For daily Nifty analysis, technical trade setups, and market insights, stay connected with Markshala.
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Disclaimer
The views and analysis provided above are for educational and informational purposes only and should not be considered as financial or investment advice. Trading and investing in the stock market involve risk, and past performance does not guarantee future results.
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