Weekly Trend Report
- 1st Feb 2026
Week Gone By
Indian stock market was shut on Monday, 26 January 2026, for Republic Day. Benchmark equity indices closed with modest gains on Tuesday. The S&P BSE Sensex jumped 319.78 points or 0.39% to 81,857.48. The Nifty 50 index added 126.75 points or 0.51% to 25,175.40. The domestic equities ended higher on Wednesday. The S&P BSE Sensex advanced 487.20 points, or 0.60%, to 82,344.68, while the Nifty 50 gained 167.35 points, or 0.66%, to settle at 25,342.75. The key equity benchmarks ended with modest gains on Thursday. The S&P BSE Sensex jumped 221.69 points or 0.27% to 82,566.37. The Nifty 50 index added 76.15 points or 0.30% to 25,418.90. The key equity benchmarks ended with modest cuts on Friday. The barometer index, the S&P BSE Sensex declined 296.59 points or 0.36% to 82,269.78. The Nifty 50 index lost 98.25 points or 0.39% to 25,320.65. India and the European Union on January 27, 2026, concluded a landmark Free Trade Agreement at the 16th India-EU Summit, marking a major milestone in bilateral economic ties between the world’s 4th and 2nd largest economies, togetheraccounting for about 25% of global GDP.
Week Ahead
With the Union Budget now imminent, investors should monitor policy cues, crude price volatility and FII activity, favouring quality large-caps and export-linked sectors while navigating short-term risk-off phases. In India, the India Union Budget for 2026-27 would be announced on Sunday (01 February 2026). On Monday (02 February 2026), the HSBC Manufacturing PMI Final for January 2026 would be released. The HSBC India Manufacturing PMI rose to 56.8 in January 2026 from 55.0 in December,
marking the strongest improvement in operating conditions in three months, according to preliminary estimates. On Friday (06 February 2026), the RBI would be announce its interest rate decision through the release of the latest monetary policy.
Technical Overview
- On the weekly timeframe, Nifty continues to trade above its 20-week and 50-week moving averages, confirming that the broader trend remains positive.
- The 10–20 MA cloud on the weekly chart is upward sloping and price is holding above it, which indicates structural strength despite recent consolidation. The long-term 200-week moving average remains far below current levels, reinforcing the primary bullish trend However, the index is facing supply near the 25,350–25,400 zone, where repeated rejections are visible, indicating a strong overhead resistance area.
- On the daily chart, Nifty has recently corrected from higher levels and is currently hovering near the 25,200–25,300 support zone, which aligns with the 10–20 MA cloud and the 50-day moving average.
- On the daily chart, Nifty has recently corrected from higher levels and is currently hovering near the 25,200–25,300 support zone, which aligns with the 10–20 MA cloud and the 50-day moving average.
- This zone is acting as immediate support and is critical to maintain short-term stability. A sustained hold above this area keeps the short term bias neutral to mildly positive. The next lower support is placed near 24,950–25,000, which coincides with a broader demand zone and the rising 200-day moving average, making it an important medium-term support.
- From an indicator perspective, RSI on the daily chart is hovering near the mid-range, reflecting indecision and lack of strong momentum.
- MACD is marginally negative and below the signal line, suggesting short-term weakness, though not a strong bearish trend.
- ADX remains low, confirming that the current phase is more of consolidation rather than a directional move.
- Conclusion:
Overall, Nifty remains in a broader uptrend on the weekly timeframe, but the daily structure indicates consolidation within adefined range. As long as the index holds above the 25,200–25,000 support zone, the larger trend remains intact. A fresh directional move is likely only on a decisive breakout above 25,400–25,750 with volume, while a breakdown below 25,000 may lead to a deeper corrective phase toward the next demand zone.
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