Almost all the major sectoral indices were traded in to the red but Capital Market, Defence, and PSU Banks indices lost the most, shed over 5 percent.
Shrikant Chouhan,
Head Equity Research,
Kotak Securities
Mumbai, 1 February 2026: Today, the benchmark indices witnessed a volatile trading session. After a roller coaster activity, the Nifty ended 495 points lower, while the Sensex was down by 1546 points. Among sectors, almost all the major sectoral indices were traded in to the red but Capital Market, Defence, and PSU Banks indices lost the most, shed over 5 percent.
Technically, after a sharp intraday dip in the second half of the day, the market trimmed some losses. From the day's lows, the market bounced back sharply. On daily charts, it has formed a long bearish candle, and it is currently trading below the 200-day SMA (Simple Moving Average), which is largely negative.
We are of the view that the short-term market texture is volatile, and volatility is likely to continue in the near future. Hence, level-based trading would be the ideal strategy for day traders. On the higher side, 25,000/81300 would act as a crucial resistance zone. As long as the market is trading below this level, weak sentiment is likely to prevail.
On the downside, the correction wave is likely to continue till 24650-24600/80100-79900. Further down side may also continue which could drag the index till 24500-24300/79600-79000. On the flip side, above 25,000/81300, the market could move up to 25,200/81900 or 200day SMA .
