Technical Analysis for 3rd February 2026 –
Nifty Predictions, Bank Nifty Predictions & Sensex Predictions
The Indian Stock Market witnessed a strong recovery session on February 2nd, 2026, as benchmarks rebounded sharply from Budget Day losses. Nifty closed at 25,088.40, recovering from intraday lows and forming a bullish candle with a lower shadow. Bank Nifty settled at 58,619, while Sensex surged 944 points to close at 81,667.
This Technical Analysis for 3rd Feb 2026 provides comprehensive market predictions with detailed support and resistance levels to help traders navigate tomorrow's session with confidence.
Key Observations of Today's Derivative Market Data
Market Closing Summary - February 2nd, 2026
NIFTY 50:
- Open: 24,796.50
- High: 25,108.10
- Low: 24,680.40
- Close: 25,088.40
- Daily Change: +262.95 points (+1.06%)
- Candle Pattern: Long bullish candle with lower shadow indicating buying interest at lower levels
BANK NIFTY:
- Open: 58,239.30
- High: 58,687.05
- Low: 58,180 (approx)
- Close: 58,619
- Daily Change: +380 points (approx) (+0.65%)
- Candle Pattern: Bullish candle with long lower shadow showing strong support
SENSEX:
- Close: 81,667
- Daily Change: +944 points (+1.17%)
- Market Sentiment: Strong recovery from Budget Day selloff
Derivative Data Analysis
Nifty Options Data:
- Highest Call Writing: 26,000 strike (indicating resistance)
- Highest Put Writing: 24,000 strike (indicating strong support)
- Max Pain Level: 25,300
- Put-Call Ratio (PCR): 0.59 (down from 0.90 - showing increased caution)
- India VIX: 15.10 (+12.9% - elevated volatility)
Market Sentiment: Mixed to cautious. While the market recovered strongly, elevated VIX and lower PCR suggest traders are hedging against potential downside.
Institutional Activity:
- FII Net Position: Sold ₹588 crore (bearish stance in cash segment)
- DII Net Position: Sold ₹683 crore
- Combined Selling: ₹1,271 crore
Support & Resistance Levels
Nifty 50 Support and Resistance
Immediate Support Levels:
- 24,900 - Critical short-term support
- 24,575-24,500 - Strong demand zone
- 24,330-24,200 - Major support if above levels break
Immediate Resistance Levels:
- 25,200 - Immediate resistance
- 25,300 - Max pain level and psychological barrier
- 25,600-25,700 - Major overhead resistance zone
Bank Nifty Support and Resistance
Immediate Support Levels:
- 58,250 - Immediate support
- 58,000 - Critical 100-DMA support level
- 57,000 - Major support if 58,000 breaks
Immediate Resistance Levels:
- 58,900 - Immediate resistance
- 59,400 - Strong resistance zone
- 60,000 - Psychological and technical resistance
Sensex Support and Resistance
Immediate Support Levels:
- 80,800-81,000 - Immediate support zone
- 80,200 - Strong support level
- 79,500 - Major demand zone
Immediate Resistance Levels:
- 82,200 - Immediate resistance
- 82,800 - Strong selling zone
- 83,500 - Major overhead resistance
Nifty Predictions – Technical Analysis for Tomorrow
Market Structure
Nifty formed a bullish engulfing candle on the daily chart, recovering strongly from Budget Day losses. The index opened 29 points lower but witnessed sustained buying interest throughout the session, closing near the day's high at 25,088.40.
Technical Indicators
- Trend: Short-term downtrend intact as Nifty remains below the broken swing low of 24,919
- Moving Averages: Trading below key short-term averages; 100-DMA at risk
- Momentum: Positive intraday momentum but lacks strength for sustained rally
- Volume: Higher than average, indicating active participation
Nifty Trading Strategy for 3rd Feb 2026
Bullish Scenario:
- Entry Zone: Above 25,200 with strong volume
- First Target: 25,300 (max pain level)
- Second Target: 25,600-25,700
- Stop Loss: Below 24,900
Bearish Scenario:
- Entry Zone: Below 24,900 breakdown
- First Target: 24,575-24,500
- Second Target: 24,330-24,200
- Stop Loss: Above 25,100
Our Opinion: Nifty is likely to face resistance in the 24,900-25,000 zone. Unless it decisively crosses 25,200, the downside pressure remains. Traders should avoid aggressive buying and wait for clear breakout above 25,200 or breakdown below 24,900 for directional trades. The immediate range for tomorrow is 24,800-25,300.
Key Points to Watch
- Ability to sustain above 25,000 psychological level
- FII and DII activity in derivatives segment
- Global market cues, especially Asian markets
- India VIX movement - continued elevation may cap upside
Bank Nifty Predictions – Technical Analysis
Market Structure
Bank Nifty closed at 58,619 after recovering from intraday lows, forming a bullish candle with long lower shadow. This indicates strong buying support at lower levels, particularly around the 58,000-58,200 zone.
Technical Indicators
- Critical Level: 58,000 (coinciding with 100-DMA) - line in the sand
- Trend: Corrective phase; broke below 58,500 critical support
- Momentum: Weak; every bounce is being sold into
- Volume: Moderate; selective buying in private banks
Bank Nifty Trading Strategy for 3rd Feb 2026
Bullish Scenario:
- Entry Zone: Above 58,900 breakout
- First Target: 59,400
- Second Target: 60,000
- Stop Loss: Below 58,250
Bearish Scenario:
- Entry Zone: Below 58,000 breakdown
- First Target: 57,500
- Second Target: 57,000
- Stop Loss: Above 58,500
Our Opinion: Bank Nifty is at a critical juncture near the 100-DMA support at 58,000. This level will decide the short-term trend. If 58,000 holds, expect a bounce towards 58,900-59,400. However, a breakdown below 58,000 can trigger aggressive selling towards 57,000. The immediate trading range for tomorrow is 57,800-59,200.
Sector Watch
- Private Banks: Showing relative strength; watch HDFC Bank, ICICI Bank
- PSU Banks: Mixed performance; lagging behind private peers
- Financials: Selective buying; avoid aggressive positioning
Sensex Predictions – Technical Analysis
Market Structure
Sensex staged a remarkable recovery, surging 944 points to close at 81,667. The index erased a significant portion of Budget Day losses, forming a strong bullish candle that indicates buying momentum at lower levels.
Technical Indicators
- Trend: Attempting to reverse from sharp Budget Day decline
- Moving Averages: Crucial support levels being tested
- Momentum: Positive but needs confirmation with follow-through buying
- Market Breadth: Improved significantly; all sectors except IT and Healthcare gained
Sensex Trading Strategy for 3rd Feb 2026
Bullish Scenario:
- Entry Zone: Above 82,200 with volume confirmation
- First Target: 82,800
- Second Target: 83,500
- Stop Loss: Below 81,000
Bearish Scenario:
- Entry Zone: Below 80,800 breakdown
- First Target: 80,200
- Second Target: 79,500-79,000
- Stop Loss: Above 81,500
Our Opinion: Sensex showed impressive resilience but faces overhead resistance at 82,200-82,800. The recovery needs follow-through buying to sustain momentum. Tomorrow's session will be crucial - a hold above 81,000 keeps the bullish structure intact, while a break below signals renewed weakness. The immediate range for trading is 80,500-82,500.
Key Sectoral Performance
Gainers Today:
- Power sector (Power Grid +8%)
- FMCG stocks
- Auto and Auto Components
- Metals and Mining
Losers Today:
- IT sector stocks (Infosys, TCS, Wipro)
- Healthcare stocks
- Select Banking stocks
Tomorrow's Market Prediction - 3rd Feb 2026
Overall Market Outlook
The Indian Stock Market is expected to open flat to slightly positive on Tuesday, February 3rd, 2026, following mixed global cues. GIFT Nifty indicates a marginal gap-up opening of around 20-30 points.
Expected Market Behavior
Scenario 1 - Bullish Case (40% Probability):
If Nifty sustains above 25,100 and Bank Nifty holds 58,500, we could see:
- Nifty moving towards 25,300-25,600
- Bank Nifty testing 59,400-60,000
- Sensex attempting 82,500-83,000
- Buying interest in financials, metals, and auto stocks
Scenario 2 - Range-Bound (45% Probability - BASE CASE):
Markets likely to remain in consolidation zone:
- Nifty: 24,800-25,300 range
- Bank Nifty: 58,000-59,000 range
- Sensex: 81,000-82,200 range
- Stock-specific action; sector rotation
Scenario 3 - Bearish Case (15% Probability):
If global cues deteriorate and 24,900 breaks on Nifty:
- Nifty sliding towards 24,500-24,330
- Bank Nifty testing 57,500-57,000
- Sensex correcting to 80,200-79,500
- Broad-based selling across sectors
Key Factors to Monitor
- Global Markets: Asian markets trading cautiously; watch US futures
- Crude Oil: Declined 5% on de-escalation hopes (Iran-US talks)
- Currency: Rupee movement against Dollar
- FII Activity: Continued selling or reversal?
- Volatility: India VIX at 15.10 - watch for further spikes
- Budget Digestion: Market reaction to STT hike and fiscal measures
Trading Recommendations
For Intraday Traders:
- Avoid taking aggressive directional bets at opening
- Wait for first 15-30 minutes to gauge market sentiment
- Trade with strict stop losses given elevated volatility
- Focus on stock-specific opportunities in strong sectors
For Positional Traders:
- Avoid bottom fishing until clear reversal patterns emerge
- Maintain hedged positions given uncertain environment
- Key levels: Nifty 24,900 support and 25,200 resistance
- Risk management is paramount
For Investors:
- Use dips to accumulate quality stocks with strong fundamentals
- Focus on sectors with Budget tailwinds (infrastructure, manufacturing, defense)
- Avoid momentum chasing; wait for consolidation
- Maintain 20-25% cash for opportunistic buying
Final Verdict
Market Summary
The February 2nd session was a strong recovery day as markets bounced back from Budget Day losses. However, the technical structure remains fragile with broken support levels and elevated volatility. While the bullish candle formation provides short-term relief, the market lacks conviction for a sustained rally.
Our Outlook for 3rd Feb 2026
We maintain a CAUTIOUSLY POSITIVE stance for tomorrow's session. The market is at a critical juncture where 24,900-25,000 on Nifty and 58,000 on Bank Nifty will act as decisive levels.
Expected Range:
- Nifty: 24,800-25,300
- Bank Nifty: 57,800-59,200
- Sensex: 80,800-82,500
Strategy: Play the range, avoid aggressive positions, and wait for breakout/breakdown with volume confirmation. Stock-specific opportunities exist, but index-level conviction is missing.
Accuracy Track Record
Our previous analysis accurately identified:
- The Budget Day volatility and potential selling pressure
- Support zones at 24,500-24,800 which held on February 2nd
- Bank Nifty's critical 58,000 level coinciding with 100-DMA
- Resistance at 25,200-25,300 on Nifty
We continue to provide data-driven, unbiased technical analysis to help traders make informed decisions in the Indian Stock Market.
Disclaimer
Important Notice: This technical analysis is provided for educational and informational purposes only. It is NOT investment advice or a recommendation to buy, sell, or hold any securities.
Stock market trading and investing involve substantial risk of loss. Past performance does not guarantee future results. The predictions, support/resistance levels, and trading strategies mentioned are based on technical analysis and historical data, which may not always be accurate.
We strongly recommend:
- Conducting your own research and due diligence
- Consulting with a qualified financial advisor before making any investment decisions
- Trading only with risk capital you can afford to lose
- Using appropriate position sizing and stop losses
- Understanding that market conditions can change rapidly
Option Matrix India and its analysts are not responsible for any losses incurred based on this analysis. All trading and investment decisions are the sole responsibility of the individual trader/investor.
About Option Matrix India
Option Matrix India is your trusted source for daily technical analysis, market predictions, and educational content on the Indian Stock Market. We provide comprehensive coverage of Nifty, Bank Nifty, and Sensex with accurate support and resistance levels, derivative data analysis, and actionable trading strategies.
Follow us for:
- Daily market analysis and predictions
- Real-time support and resistance updates
- Options trading strategies
- Technical chart analysis
- Market education and learning resources
Stay informed, trade smart, and grow your wealth with Option Matrix India - your partner in the journey of stock market success.
Connect With Us:
- Website: Option Matrix India
- Regular Updates: Daily Technical Analysis
- Market Coverage: Nifty, Bank Nifty, Sensex, and Individual Stocks
Next Update: Technical Analysis for 4th Feb 2026 (Coming Tomorrow)