By Somnath Das | www.markshala.com
Market Recap: Nifty Performance on Friday, 06 February 2026
The Indian equity market witnessed a highly volatile yet technically structured trading session on Friday, 06 February 2026. As anticipated, Nifty displayed sharp intraday swings, offering excellent opportunities for traders who follow disciplined technical strategies.
Nifty Futures traded within a wide intraday range of nearly 178 points, reflecting increased participation from both buyers and sellers. The market opened with a gap-down, indicating cautious sentiment influenced by weak global cues. However, within the first 5 to 10 minutes of trade, selling pressure intensified and a clear short trade opportunity emerged below the level of 25,667.
Once this level was breached, Nifty Futures quickly declined by approximately 102 points, validating the intraday technical setup. This early momentum move once again highlighted the importance of price action, market structure, and disciplined trade execution.
Throughout the rest of the session, volatility remained elevated. However, a strong recovery was observed in the second half, which allowed the index to regain significant lost ground and close near the day’s higher levels. This price behavior clearly reflects active accumulation at lower zones and suggests that market participants continue to show confidence in Indian equities despite global uncertainty.
Stock of the Day Performance: Adani Energy
Adani Energy, our selected stock of the day, performed in line with expectations. The stock provided a desired entry near the level of 1,011 and managed to close higher at 1,017.
This trade is currently in a profitable zone, and traders can consider managing the position smartly by applying appropriate trailing stop-loss strategies. The technical structure of Adani Energy continues to show strength, and as long as the broader market remains stable, this stock may offer further upside potential.
Understanding Today’s Market Structure
A closer observation of today’s price action confirms an important market phenomenon. The recent price movements suggest that weak hands are gradually being eliminated, while stronger market participants are accumulating positions at lower levels.
On the daily chart, Nifty successfully broke through multiple nearby supply zones during the session. The recovery towards the end of the day enabled the index to close at 25,693, adding nearly 50 points from the intraday lows. More importantly, Nifty managed to reclaim its crucial 50-day exponential moving average, which acts as a key short-term trend indicator.
At present, Nifty is trading above all its major moving averages. This technical development is generally considered positive and reflects strengthening market structure. However, one should not ignore the fact that the index has formed lower highs for the third consecutive day. Such a pattern often reflects distribution at higher levels and introduces short-term caution.
As a result, the broader trend remains neutral with a bearish bias. Nevertheless, if Nifty manages to sustain above critical resistance zones, the market structure could quickly shift in favor of the bulls.
Trend Outlook: What Lies Ahead?
From a trend perspective, Nifty currently stands at a crucial junction. The index needs to deliver a consistent daily close above the level of 25,860 for at least one to two trading sessions to confirm a clear bullish trend reversal.
If this condition is met, it could open the door for fresh buying interest and potentially lead to a sustained upside movement. Encouragingly, given the current structure and accumulation signs, achieving this breakout does not appear overly difficult, provided global cues remain supportive.
Until then, traders are advised to maintain disciplined risk management and strictly follow technical levels.
Nifty Trading Strategy for Monday, 09 February 2026
Based on detailed technical analysis, price action behavior, and market structure, the following trading setups can be considered for the next trading session. These strategies are shared purely for educational purposes and should be executed with strict risk control.
Bullish Scenario: Long Trade Setup
If Nifty Futures trades decisively above the level of 25,750 and sustains above it, a long trade may be considered.
The recommended stop loss for this trade is 50 points, with a minimum upside target of 100 points. In this scenario, the immediate resistance may appear near 25,856, followed by a stronger resistance zone around 26,200.
This setup reflects a potential breakout and continuation of upward momentum.
Bearish Scenario: Short Trade Setup
If Nifty Futures breaks below the support level of 25,599 with convincing price action, a short trade may be considered.
In this case, traders may keep a stop loss of 50 points and aim for a minimum target of 100 points. The immediate support on the downside is expected near 25,258.
This setup indicates a possible breakdown and continuation of selling pressure.
Range-Bound Strategy
If Nifty continues to remain range-bound, traders may consider trading between the levels of 25,599 and 25,750, which provides a trading range of approximately 145 points.
In such a scenario, buying may be considered near support and selling near resistance, strictly maintaining a stop loss of 50 points and a target of around 100 points. It is important to note that in range-bound conditions, a maximum of two trades should be executed during the day: one range trade and one momentum trade. If the first trade is successful, the second trade should be avoided to protect profits and maintain emotional discipline.
Stock of the Day for Monday: Max Financial Services Ltd (MFSL)
For Monday’s session, Max Financial Services Limited stands out as a technically strong candidate.
The stock is displaying healthy price structure, positive momentum, and supportive volume behavior. At current market levels near 1,704, traders may consider a long position with a stop loss placed at 1,684 and a target of 1,746.
This trade offers a favorable risk-reward ratio of approximately 1:2.07, making it suitable for short-term positional trading, subject to proper risk management.
Global and Geopolitical Developments from the Last 24 Hours
Global developments continue to influence short-term market sentiment, and the last 24 hours have witnessed several key events that may impact financial markets.
Global equity markets experienced heavy selling pressure due to rising concerns around excessive AI spending, declining profitability, and increasing layoffs in the US technology sector. Wall Street witnessed a sharp sell-off, erasing nearly one trillion dollars in market capitalization, which triggered a risk-off mood across Asia and Europe. As a result, expectations of a US Federal Reserve rate cut in March have strengthened.
In India, the Reserve Bank of India maintained the repo rate at 5.25 percent, aligning with market expectations. With inflation remaining under control and GDP growth projections remaining strong, this policy stance provided stability to Indian equity and bond markets.
Meanwhile, diplomatic discussions between the United States and Iran kept crude oil prices highly volatile. Any potential agreement could increase oil supply, thereby influencing inflation and currency markets globally.
In another significant development, the United States and Russia agreed to restart high-level military dialogue, easing certain geopolitical concerns, particularly surrounding the Ukraine conflict.
Lastly, weak expectations from upcoming US employment data have intensified recession concerns, leading to a decline in bond yields and weakening of the US dollar. This has provided relative support to emerging market assets, including Indian equities.
Final Market View
Despite ongoing global uncertainties, Indian markets continue to display resilience and strong internal structure. The consistent accumulation at lower levels, coupled with technical stability, indicates that medium-term prospects remain constructive.
However, traders should continue to remain disciplined, follow technical levels strictly, and avoid emotional decision-making. Volatility is expected to persist, making risk management more important than ever.
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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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