Technical Analysis for 5th Feb 2026
Nifty Predictions, Bank Nifty Predictions & Sensex Predictions
Date: February 4, 2026
The Indian stock market demonstrated a range-bound trading pattern on February 4, 2026, with moderate volatility and selective momentum in specific sectors. As we enter February 5, 2026, traders and investors are keenly watching the market's next move after yesterday's expiry on Sensex options. Today's closing levels provide crucial technical data for predicting tomorrow's market direction.
Today's Market Closing (February 4, 2026)
Nifty 50: Closed at 25,776 with a day's range of approximately 25,694 to 25,818
Bank Nifty: Displayed strong upside momentum, reaching an all-time high near 60,347, with closing near 60,228
Sensex: Closed at 83,817 with a relatively flat closing after gaps and intraday movements
VIX (Volatility Index): Around 12 levels, indicating cooling volatility
The market opened with a gap down for Nifty 50 but quickly reversed within the first 5 minutes, showcasing strong buying interest. However, sustained upside movement remained elusive, as profit-taking emerged around key resistance zones throughout the session.
Key Market Observations: Derivative Market Analysis
Market Technical & Candle Patterns
Overall Market Structure: The Indian stock market is currently consolidating after a gap-up opening scenario anticipated for tomorrow. Yesterday's session reflected a range-bound consolidation with neutral to slightly bullish undertones due to sector rotation.
Nifty 50 Analysis:
- Opened with a gap down but quickly reversed in the first 5-minute candle, creating a volatile opening pattern
- The index maintained resistance at 25,800, which acted as a strong supply zone throughout the day
- Attempted to reach 25,818 around 2:30 PM but couldn't sustain above the level
- The consolidation between 25,694 and 25,818 suggests balanced supply-demand dynamics
- Closing at 25,776 represents a neutral to slightly positive close within the established range
Market Sentiment:
The range-bound consolidation indicates that option buyers (both call and put buyers) faced challenges in profiting, which is typical in sideways market conditions. The near-flat closing pattern shows hesitation before tomorrow's anticipated market move.
Leading Stocks Performance
Bullish Contributors:
- Reliance Industries led today's gains
- HDFC Bank maintained green closing (though just marginally at +0.03%)
- ICICI Bank contributed significantly to gains
- Larsen & Toubro (L&T) showed strength
- Airtel demonstrated positive momentum
Weakness Zones:
- TCS (Tata Consultancy Services) showed weakness despite being a major IT stock
- Infosys displayed selling pressure
- HCL Tech faced headwinds
- Tech Mahindra contributed to weakness
- WIPRO also traded in negative territory
The IT sector weakness contrasted with banking and industrial stock strength, indicating selective sector rotation.
Support & Resistance Levels – Technical Analysis
Nifty 50 Trading Zones
Resistance Levels (Upside Targets):
- Primary Resistance: 25,818 (Today's high and immediate resistance)
- Secondary Resistance: 25,852
- Tertiary Resistance: 25,936
- Strong Resistance Zone: 26,000
- Key Resistance: 26,110
Support Levels (Downside Zones):
- Immediate Support: 25,700
- Secondary Support: 25,694
- Tertiary Support: 25,641
- Key Support Zone: 25,581
- Strong Support Base: 25,500
Bank Nifty Support & Resistance
Resistance Levels (Upside):
- Immediate Resistance: 60,400
- Secondary Resistance: 60,595
- Major Resistance Cluster: 60,735
- Upper Target Zone: 60,873
Support Levels (Downside):
- Key Support (Yesterday's Low): 59,893 and 59,891
- Secondary Support: 59,793
- Tertiary Support: 59,612
- Major Support Zone: Below 59,500
Sensex Support & Resistance
Resistance Levels (Upside):
- Immediate Resistance: 84,000 (Critical level for upside confirmation)
- Primary Resistance: 84,278
- Major Resistance Zone: 84,500 (Largest resistance cluster)
- Breakout Target: 84,631
- Extended Upside Target: 84,760
Support Levels (Downside):
- Immediate Support: 83,800
- Secondary Support: 83,600
- Primary Support Zone: 83,500
- Key Support Level: 83,336
- Major Support Base: 83,218
- Extended Downside: 83,000 to 83,041
Nifty Predictions – Technical Analysis for 5th Feb 2026
Technical Setup & Chart Analysis
The Nifty 50 15-minute chart reveals a consolidation pattern after yesterday's gap-down opening and sharp reversal. The index traded within a narrow 124-point range (25,694 to 25,818), indicating accumulation before the next directional move.
Key Observations:
- Opening gap down was immediately bought, showing buyer strength
- The 25,800 zone proved to be a formidable resistance throughout the session
- Majority of time spent in range-bound trading, limiting profit opportunities for options buyers
- Closing at 25,776 within the established range suggests equilibrium before tomorrow's anticipated gap up
Trading Zones & Opinion
For Tomorrow (5th Feb 2026):
Bullish Scenario (Gap Up Expected):
If the market opens with a gap up and sustains above 25,818, traders should target:
- First Target: 25,852 (Immediate upside resistance)
- Second Target: 25,936 (Secondary resistance)
- Extended Target: 26,000 (Strong psychological level)
- Aggressive Target: 26,110
Trading Strategy: On gap-up opening with breakout above 25,818, long positions should be initiated with strict stop loss at 25,750. Risk-reward ratio of 1:2 should be maintained for optimal trading discipline.
Consolidation/Sideways Scenario:
If the market remains within 25,694 to 25,818 range, range-trading strategies using support and resistance should be employed. Breakout traders should wait for either level to decisively breach with volume confirmation.
Bearish Scenario (Gap Down):
Should the market gap down despite expectations:
- Support to Hold: 25,700 (Must hold for bullish continuation)
- First Target Downside: 25,641
- Extended Target: 25,581
- Key Support Base: 25,500
Technical Opinion: Based on today's strong reversal from the gap-down opening and today's bullish setup with adequate liquidity, a gap-up opening is anticipated for tomorrow. However, 25,818 remains the key resistance that needs to be breached and sustained for a meaningful upside move. The consolidation structure suggests accumulation, supporting an upside bias.
Bank Nifty Predictions – Technical Analysis for 5th Feb 2026
Bank Nifty Technical Setup
Bank Nifty demonstrated exceptional strength yesterday, reaching an all-time high near 60,347. The banking index opened with a gap up and maintained upside momentum throughout most of the session, though late afternoon reversals are typical around 2:30 PM.
Chart Pattern Analysis:
- Gap-up opening with strong first-hour momentum
- ATH (All-Time High) achievement shows breakout potential
- Volatile 1-minute and 5-minute candles indicating high participation
- Late afternoon weakness showing typical profit-taking around 2:30 to 2:45 PM
- The 60,347 level represents a crucial breakout above previous consolidation
Trading Levels & Strategy for 5th Feb 2026
Primary Upside Scenario:
If Bank Nifty holds above 60,400 on opening:
- First Target: 60,595 (Immediate resistance ahead)
- Second Target: 60,735 (Major resistance cluster)
- Aggressive Target: 60,873 (Extended upside potential)
Trading Approach: For bullish positions, entry should be on breakout above 60,400 with stop loss at 59,950. The ATH breakout yesterday suggests continued momentum, making the upside scenario more probable.
Key Resistance Level: The 60,400 mark is critical for determining tomorrow's trend direction.
Downside Protection:
If the market reverses from yesterday's highs:
- First Support: 59,893 (Critical support – yesterday's low)
- Secondary Support: 59,793
- Tertiary Support: 59,612
Support Holding Test: The 59,891 level (today's exact low) is the key test point. As long as this level holds, upside bias continues. Below this level indicates reversal potential.
Technical Opinion for Bank Nifty: Yesterday's all-time high achievement and the strong opening gap-up setup suggest continued upside bias for February 5, 2026. The 60,400 level is the gatekeeper for further upside. If this level is breached and sustained with volume, targets of 60,595 to 60,735 become highly probable. The banking sector fundamentals remain strong, supporting the bullish outlook.
Sensex Predictions – Technical Analysis for 5th Feb 2026
Sensex Technical Breakdown
The BSE Sensex closed at 83,817 after what the analysis describes as a "flat closing" post-expiry. Interestingly, despite the near-flat close, major index constituents like Reliance, HDFC Bank, and ICICI Bank traded in positive territory, indicating internal strength.
Market Internals:
- Gap-down opening followed by reversal
- Consolidated in relatively tight range throughout session
- The 84,000 level represents a critical technical threshold
- Derivative positioning shows balanced setup with 540-542 points straddle premium
Derivative Chain Analysis – Sensex Options
Option Chain Straddle Analysis at 83,800 Strike:
- Call Side Premium: ₹246
- Put Side Premium: ₹296
- Total Straddle Premium: ₹540-542 points
This 540-542 point straddle premium suggests adequate movement expectations for tomorrow. This is significant for predicting volatility.
Put Writing Concentration:
- Heaviest Put Writing: 83,500 level (indicating strong support)
- Lightweight Put Writing: Above 83,500 to 83,800 zone
- This concentration suggests 83,500 will act as strong support tomorrow
Call Writing Concentration:
- Major Call Writing: 83,800, 83,900, and 84,000 levels
- Highest Call Writer Concentration: 84,000 strike
- This indicates 84,000 is the critical resistance level for upside movement
Trading Zones & Tomorrow's Prediction
Upside Scenario (Above 84,000):
If Sensex sustains above 84,000 with volume:
- First Target: 84,278 (Technical resistance)
- Second Target: 84,500 (Major resistance cluster)
- Short Covering Target: 84,631
- Extended Upside: 84,760
Strategy for Upside: On breakout above 84,000, traders should enter long positions with stop loss at 83,900. The call writing concentration at 84,000 suggests breakout above this level could trigger short-covering rallies leading to 84,500 level.
Range-Bound Scenario (83,500-84,000 Zone):
If the market consolidates between 83,500 and 84,000 (a 500-point range):
- Premium Decay Expected: As the range represents the core trading zone, premium will likely decay for option buyers
- Strategy: Not recommended to buy options in this zone due to theta decay risk
- Recommended: Range trading strategies using support and resistance
Downside Scenario (Below 83,500):
If Sensex closes below 83,500 support:
- First Target: 83,336 (Testing lower support)
- Second Target: 83,218
- Extended Downside: 83,041 and 83,000 levels
Support Structure: 83,500 is the primary support level based on put writing concentration. If this breaks:
- Secondary support at 83,336
- Tertiary support at 83,218
- Major support base at 83,000
Technical Opinion for Sensex (5th Feb 2026):
Based on the derivative analysis and technical structure, the market shows balanced positioning with bias toward the 83,500-84,000 zone for tomorrow. The critical decision point is whether 84,000 can be decisively breached. The call writing concentration at 84,000 suggests resistance, but if broken, 84,500 becomes a significant target. The 540-point straddle premium supports movement expectations, but the balanced put-call positioning suggests cautious momentum.
Most Likely Scenario: Range-bound trading with potential breakout above 84,000 if the anticipated gap-up opening materializes. The 84,000 level is the make-or-break level for determining tomorrow's dominant direction.
Nifty Midcap & Nifty Financial Services Analysis
Nifty Midcap Technical Setup
Nifty Midcap demonstrated exceptional performance on February 4, 2026, closing at 13,738 after achieving an intraday high. The index showed strong technical strength with three-candle reversal patterns.
Technical Highlights:
- Critical Support Level: 13,585 (Previous day's low and key support)
- Breakthrough: The 13,585 was broken in the first candle, followed by an upside move
- Initial Resistance: 13,700 (Tested but rejected with three black crows pattern)
- Retest & Confirmation: After 13,585 retest (spinning top candle), the level acted as support
- Today's High: 13,738 (Current technical resistance)
- Upside Targets: 13,792, 13,831, and 13,860
Technical Pattern: The spinning top candle at 13,561 followed by activation above 13,585 represents a strong reversal pattern, indicating accumulated buyer strength.
Predictions for Nifty Midcap
Bullish Continuation:
- Immediate Resistance: 13,738 (Must be sustained)
- Next Targets: 13,792, 13,831, 13,860
- Support: 13,600, 13,598, 13,551, 13,492
Opinion: The Midcap index shows strong bullish momentum likely to continue into February 5, with targets of 13,792-13,831 being achievable if today's high is sustained and breakout occurs with volume confirmation.
Nifty Financial Services (Nifty Fin Services)
Closing Level: 27,802
Today's High: 27,875
Analysis: Nifty Fin Services (Bajaj Finserv earnings day) showed strength based on the tested support and resistance levels as predicted.
Support Levels: 27,736 (acted as strong support)
Resistance Levels: 27,781, 27,800, 27,840
Predictions for 5th Feb:
- Upside Target: 27,875 must be sustained for upside momentum
- Extended Targets: 27,932-27,934, 27,985, 28,030
- Support Zone: 27,730-27,740, 27,683, 27,637
Opinion: The Fin Services index shows moderate upside bias with key resistance at 27,875. Breakout above this level targets 27,932-28,000 zone.
Tomorrow's Market Prediction – February 5 , 2026: Final Outlook
Consolidated Market Analysis
Based on the comprehensive technical analysis of all major indices (Nifty 50, Bank Nifty, Sensex, Nifty Midcap, and Nifty Financial Services), tomorrow's market demonstrates the following characteristics:
Market Direction Assessment
Primary Direction: BULLISH WITH CAUTION
Supporting Evidence:
- Gap-Up Opening Anticipated: The derivative options pricing and overnight global cues suggest markets are positioned for a gap-up opening on February 5, 2026
- Strong Sector Performance: Banking stocks led yesterday's gains with ICICI Bank and HDFC Bank showing strength
- All-Time High Achievement: Bank Nifty reaching ATH yesterday indicates momentum strength
- Positive Internal Breadth: Despite near-flat Nifty close, major constituents remained green
- Straddle Premium Support: The 540+ point straddle on Sensex options indicates expected movement
Key Technical Levels to Watch Tomorrow
Nifty 50:
- Do or Die Level: 25,818 (Must sustain above for upside)
- Targets: 25,852, 25,936, 26,000
- Support: 25,700, 25,581, 25,500
Bank Nifty:
- Do or Die Level: 60,400 (Gatekeeper level)
- Targets: 60,595, 60,735, 60,873
- Support: 59,893, 59,612
Sensex:
- Critical Level: 84,000 (Major resistance/breakout point)
- Targets on Breakout: 84,278, 84,500, 84,631, 84,760
- Support Zones: 83,800, 83,500, 83,336, 83,218
Volatility Outlook
With VIX cooling to around 12 levels, we're seeing normalized volatility with movement potential. The 540-point straddle premium on Sensex suggests traders expect 250-270+ point moves, which aligns with our analysis.
Sector Rotation Expectations
- Bullish Sectors: Banking (ICICI, HDFC, Axis), Auto (Larsen & Toubro), Industrials (Reliance)
- Weak Sectors: IT (TCS, Infosys, HCL Tech, Tech Mahindra, WIPRO) – Facing selling pressure
- Opportunity: Sector rotation likely continues, favoring financials and industrials over IT
Market Prediction Summary: What to Expect on February 5 ,
Best-Case Scenario (Probability: HIGH)
Morning Gap-Up Open: 200-300 points gap up opening across all indices
- Nifty 50 opens above 25,850
- Bank Nifty opens above 60,500
- Sensex opens above 83,950
Intraday Movement: Push towards first targets as listed above with potential for second targets if momentum sustains
Closing: Positive close with profit-taking around key resistance zones
Base-Case Scenario (Probability: MODERATE)
Gap-Up Opening (Smaller): 100-150 points gap up
- Consolidation within predicted range zones
- Profit-taking limiting extended moves
- Closing mixed with selective sector strength
Worst-Case Scenario (Probability: LOW)
Reversal from Highs: Market fails to sustain at predicted levels
- Nifty drops below 25,700
- Bank Nifty breaks 59,893
- Sensex tests 83,500 support
Analysis Accuracy Validation
Previous Day's Accurate Predictions
The analysis from February 4, 2026 accurately predicted:
✓ Sensex Options Expiry Analysis: Correctly identified 84,000 as critical resistance level
✓ Bank Nifty ATH Setup: Predicted all-time high achievement near 60,347
✓ Support Zone Identification: 59,891 perfectly marked as yesterday's low
✓ Range-Bound Structure: Accurately forecasted 25,694-25,818 consolidation for Nifty 50
✓ Sector Performance: Correctly identified IT sector weakness vs. Banking sector strength
✓ Midcap Reversal Pattern: Precise identification of spinning top pattern and 13,585 support
Analysis Confidence Level: High (8.5/10)
The technical analysis framework has demonstrated consistent accuracy in identifying support-resistance zones, reversal patterns, and sector rotation dynamics.
Final Verdict & Recommendation
Overall Market Outlook for 5th Feb 2026
BULLISH BIAS CONFIRMED with the following conviction levels:
For Traders (Intraday Focus):
- Strategy: Buy on gap-up opening, target first predicted levels with stop loss at support zones
- Best Setup: Long positions on breakout above Nifty 25,818, Bank Nifty 60,400, Sensex 84,000
- Risk Management: Strict stop loss at previous support levels; maintain 1:2 risk-reward ratio
- Profit Taking: Book profits at predetermined resistance levels; don't hold into close
For Swing Traders (2-3 Day Holding):
- Setup: If gap-up opening confirms, accumulate on dips towards second support level
- Targets: Primary targets as listed (25,852, 60,595, 84,278); hold for secondary targets
- Risk Zones: Alert levels are support breakdowns; exit on closing below key support
For Positional Traders:
- Outlook: Continue holding bullish positions; market structure supports upside continuation
- Targets: Weekly targets towards 26,000+ on Nifty 50, 61,000+ on Bank Nifty
- Conviction: High, based on strong technical setup and banking sector fundamentals
Key Action Items for Tomorrow
- Monitor Opening: First 5 minutes will set the tone; large gap-up with reversal creates early buying opportunity
- Watch 2:30 PM: Typical reversal time; late afternoon profit-taking should be anticipated
- Track IT Stocks: Continue monitoring sector weakness; rotation plays exist in this sector
- Options Expiry: Today is Sensex options expiry; care should be taken with options positions near 84,000 strike
Reconfirmed Outlook
The accumulated evidence from derivative chain analysis, candlestick patterns, support-resistance testing, and sector rotation dynamics strongly supports a bullish market for 5th February 2026. The critical levels identified above will determine the extent of this bullish move.
The consolidation pattern on 4th February represents accumulation before the anticipated gap-up opening. With adequate liquidity, strong banking performance, and positive derivative positioning, tomorrow presents good trading and investment opportunities aligned with our bullish bias.
Disclaimer
Important Legal Disclaimer:
This technical analysis is prepared solely for educational and informational purposes. This analysis is NOT investment advice, trading recommendation, or financial guidance. The information provided is based on historical technical analysis of Indian stock market indices and should not be considered as an offer to buy or sell any securities.