The Indian stock market remained indecisive on Thursday, 05 February 2026, with Nifty Future trading in a narrow range throughout the session. Despite decent intraday volatility on paper, the market structure stayed non-directional, making it difficult for traders to extract consistent profits. The session demanded patience, strict risk management, and a clear understanding of price action.
During the day, Nifty Future moved within a range of nearly 122 points. However, the internal price behaviour was choppy, and directional follow-through was missing. Extracting 80 to 100 intraday points from such a market was possible only with precise execution. For most traders, today’s market was more about capital protection than aggressive profit-making.
As per the previous trading day’s technical outlook, 25,710 was identified as a crucial support for short trades, while 25,855 was marked as the resistance for potential long positions. Nifty Future never approached the upper resistance, highlighting a lack of bullish strength. On the downside, the market attempted to break below 25,710 multiple times.
After 2 PM, one such breakdown appeared convincing initially, but it quickly turned into a false move. The index slipped around 37 points lower before recovering sharply and closing back above the support level. This behaviour clearly indicates the presence of buying interest at lower levels and a market that is unwilling to break down decisively.
Nifty Spot Market Overview
Nifty Spot ended the session at 25,642, closing lower by approximately 0.52 percent. The market opened with a gap down and failed to move above its opening level throughout the day, reflecting cautious sentiment among participants.
Importantly, Nifty Spot traded entirely within the previous day’s range. This reinforces the view that bulls and bears are currently evenly matched. Neither side has been able to assert dominance, resulting in a sideways market structure.
From a technical standpoint, Nifty Spot closed marginally below its 50-day exponential moving average, which is placed near 25,648. While this technically qualifies as a breakdown, the difference is very small and should be viewed cautiously. A mild gap-up opening on Friday, followed by early sustenance above the 50-DEMA, would nullify this signal. Conversely, a gap-down opening could turn the same level into a strong intraday resistance.
Nifty Future Trading Strategy for Friday, 06 February 2026
Before discussing exact trade setups, it is worth noting that despite a 0.5 percent decline, the overall price structure suggests gradual accumulation at lower levels. The market appears to be absorbing selling pressure rather than accelerating downward. This observation is based purely on price action and will require confirmation in the coming sessions.
For the short side, a trade should be considered only if Nifty Future trades convincingly below 25,667. In such a case, a short position can be initiated with a stop loss of 50 points and a target of 100 points. Immediate support lies near 25,637, followed by a stronger support around 25,584. A decisive breakdown below this zone could lead to a deeper correction, with potential downside towards 25,258 in the coming days.
On the long side, a trade is advisable only if Nifty Future moves decisively above 25,797. Once this level is crossed and sustained, a long position can be taken with a 50-point stop loss and a 100-point target. The first resistance is expected near 25,856, followed by 25,910. A strong breakout above this resistance zone could open the path towards 26,200 levels over the short to medium term.
If the market fails to create momentum on either side and continues to trade within a defined range, a support-and-resistance-based strategy can be applied. In this scenario, a long trade can be considered the first time Nifty Future tests 25,667 during the session, while a short trade can be considered the first time it approaches 25,797. In both cases, maintaining a strict 50-point stop loss is essential.
Traders must avoid over-trading at all costs. A maximum of two trades in a day is sufficient. Ideally, one momentum-based trade and one range-based trade are enough. If the first trade is successful, it is better to avoid taking a second trade.
Stock of the Day: Adani Energy Solutions Ltd
A new “Stock of the Day” segment has been introduced, where stocks from the Nifty 500 universe will be shared only when they meet predefined technical criteria. If no such setup is available on a given day, this section will be skipped.
For today, Adani Energy Solutions Ltd, trading under the NSE symbol ADANIENSOL, has come into focus. The stock is showing strength and positive momentum on the charts. At the current market price of around 1,011, the stock can be considered for a positional buy in the cash market.
For this trade, a stop loss can be placed at 976, while the upside target is seen near 1,055. This setup offers a favourable risk-reward ratio of approximately 1:1.32, making it a technically sound positional opportunity.
Key Geopolitical and Economic Updates from the Last 24 Hours
Recent global and domestic developments continue to influence market sentiment. Foreign investment sentiment towards India has started improving after the US–India trade deal reduced tariff-related uncertainties. This has raised expectations of a gradual return of foreign portfolio investors after prolonged selling pressure.
Despite the positive trade news, the Indian rupee is expected to remain range-bound and slightly weak due to structural factors such as global dollar strength and capital flow dynamics.
On the geopolitical front, India has agreed to initiate free trade agreement talks with the Gulf Cooperation Council. This move is expected to strengthen economic ties with energy-rich West Asian nations and improve long-term trade prospects.
Domestically, experts believe that Budget 2026 measures will help sustain economic growth and attract capital inflows through continued public spending and reform-oriented policies. Additional developments, including semiconductor cooperation with Malaysia, liquidity-related discussions between banks and the RBI, and improving performance at Air India Express, indicate steady economic activity.
Conclusion
Nifty is currently in a consolidation phase where direction is yet to be decided. In such market conditions, disciplined, level-based trading is far more effective than aggressive speculation. Friday’s opening and early price action will be crucial in determining whether the market prepares for a breakout or extends its sideways movement.
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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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