Foreign investors (FIIs/FPIs) continued to be net sellers on February 5 with selling shares worth Rs 2151 crores. At the same time, domestic institutional investors (DIIs) net bought shares worth Rs 1130 crore, according to provisional exchange data.
During the session, DIIs purchased shares worth Rs 15183 crore and sold shares worth Rs 14,053 crore. In contrast, FIIs bought shares worth Rs 14,631 crore but sold shares totalling Rs 16,780 crore.
For the year so far, FIIs have been net sellers of shares worth Rs 43,063 crore, while DIIs have net bought shares worth Rs 70,978 crore.
Market view
At close, the Sensex was down 503.76 points or 0.6 percent at 83,313.93, and the Nifty fell 133.2 points or 0.52 percent at 25,642.8.
Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services, said markets are likely to react to interest rate decisions by the Bank of England and the European Central Bank, which were announced after market hours on Thursday.
Looking ahead, the Indian Commerce Ministry has indicated that the first tranche of the bilateral trade agreement with the US is expected to be rolled out within the next four to five days, followed by an executive order to implement the reduced 18 percent tariff on Indian goods. A broader and more comprehensive agreement is expected to be signed by mid-March. The development is likely to provide greater clarity to market participants, Khemka added. The markets are expected to track global developments, macroeconomic data and the ongoing December quarter earnings season in the near term, he said.
On the technical front, experts said that after the sharp rally seen earlier this week, the Nifty has entered a consolidation phase and is currently trading within a defined range. The index continues to trade above key moving averages, while the relative strength index remains above the 50 mark, indicating that the broader trend remains positive.
Analysts said the current consolidation appears to be a healthy cooling-off phase following the sharp gap-up move of nearly 1200 points earlier. The next major trigger for markets is likely to emerge after the Reserve Bank of India’s policy announcement. From a technical perspective, the Nifty is currently holding above the key support zone of 25500, where the 20-day exponential moving average and the 89-day exponential moving average converge. Below this, strong support is seen around 25250, which coincides with the 200-day exponential moving average, the bullish gap zone and the 61.8 percent retracement level of the entire upmove from the Budget-day low. On the upside, the 25750–25850 range remains an immediate resistance zone, followed by the psychological 26000 mark. Market participants are expected to closely monitor these levels in the near term.