Pre-Market 5 Feb 2026: Nifty Holds Above 25,700 Amid IT Sector Pressure

Indian equity markets head into Thursday after a narrow session on Wednesday, 4 February, with benchmarks closing slightly higher despite heavy pressure on IT stocks.

Gains in most sectors helped offset the drag from technology names, while sentiment remained supported by optimism around the India-US trade deal, even as details of the agreement are still awaited.

Trading through the day remained mixed. Markets opened flat, moved in a tight range, and saw sector-specific action rather than broad momentum.

Yesterday’s Market Recap

Benchmarks ended the session with modest gains.

• The BSE Sensex rose 78.56 points to close at 83,817.69.

• The NSE Nifty 50 added 48.45 points, settling at 25,776.

Early trade was subdued. At 9:21 IST, the Nifty was down 0.03% at 25,720.65, while the Sensex slipped 0.12% to 83,653.21, as selling in IT stocks capped early gains.

The muted close followed a strong rally in the previous session, when markets had surged on the India-US trade deal announcement.

Sectoral Performance

The main drag on Wednesday came from the IT sector.

The Nifty IT index fell 5.9%, its steepest single-day drop in nearly six years. Fears of artificial intelligence disruption caused a worldwide sell-off in software businesses, which was mirrored in domestic IT equities.

Despite strength in other areas, the decrease in IT, which has a significant impact on benchmark indexes, restricted total advances.

13 of the 16 main sectors ended the day higher. Across a number of non-IT categories, buying demand was evident.

The mid-cap index increased by 0.6%, while the small-cap index increased by 1.3%, indicating a persistent willingness to take on risk outside of front-line stocks.

Rupee, Volatility and Early Signals

In the currency market, the rupee weakened, ending 0.2% lower at 90.4350 per US dollar, compared with 90.2650 in the previous session.

Volatility eased further. The India VIX slipped more than 1.5%, extending the cooling seen after recent sharp swings.

Early offshore cues were weak. GIFT Nifty traded around 85 points lower at 25,779, pointing to a cautious start.

Global Markets

Asian markets traded mixed through the session. In the US, equities closed uneven overnight. At 9:30 a.m. ET, the Dow Jones rose 175.92 points (0.40%) to 49,439.32. The S&P 500 edged up 0.04% to 6,920.72, while the Nasdaq Composite fell 0.27% to 23,191.63, weighed down by continued selling in technology stocks.

Technical Levels to Monitor

On a technical level, support lies at 25,550, which is the 89-EMA. A stronger support zone around 25,250 is represented by the 200-day SMA, the bullish gap region, and the 61.8% retracement. After 26,000 is seen as an immediate resistance level, a bigger barrier is seen on the upside at 26,300.

Even if indexes stabilise in the near future, the overall structure is unaffected as long as important supports hold.

What Should We Expect in Today’s Market?

As markets open on Thursday, focus is likely to remain on how indices absorb the sharp IT sell-off while tracking earnings and global cues. Investors and traders will also keep a tight eye on global signals and currency fluctuations.

Selective stocks may continue to experience activity, while benchmarks may remain range-bound following recent increases.

Sources:

Mint

ET