*Morning snippet:- 04 February 2025* *Index Observation* Nifty ended with half a percent cut defending its support of 23350 on a closing basis despite a wide gap down opening. Further leg upside continues to remain open unless we see a close below 23300. Bank Nifty as well has not negated its support for a potential upside towards 50500 after its W pattern breakout on daily charts. Support continues to be seen at 48500 on daily closing basis. BSE Sensex has similar bullish pattern seen on Nifty, with its weekly expiry due today, the index could relatively be more volatile than its peers. 78600 are set to be reclaimed on charts with 76400 acting as immediate support for the index. BSE Sensex weekly expiry is scheduled for today. *Interesting Observation* The Reserve Bank of India’s (RBI) recent announcement on Open Market Operations (OMO) has heightened market expectations of further monetary policy easing. This has led to increased investor interest in rate-sensitive sectors such as banking and real estate. Since Nifty’s bottom made on January 27, sectors that are closely linked to interest rates have demonstrated strong momentum. The Nifty Real Estate index has gained 11% so far, outperforming the broader Nifty 50. Similarly, Nifty Bank has shown signs of strength, reflecting optimism around potential policy support. The focus now shifts to the RBI’s Monetary Policy Committee (MPC) meeting scheduled for Friday, February 7. Given the current macroeconomic conditions, the central bank is widely expected to reduce the repo rate by 25 basis points. A rate cut could further bolster rate-sensitive sectors by improving liquidity. While we expect pullback in nifty it will be prudent to remain participated in these sectors *Derivatives* *DERIVATIVES* *Index IV* *NIFTY:* IV : 12.56 IVP : 73.6 IVR : 46.12 *BANKNIFTY:* IV : 14.7 IVP : 72.4 IVR : 35.3 *Trade Setup* Activity in Cash Market FII Cash: -3958.37 Crs. DII Cash: 2708.23 Crs. *WTD* FII: -5285.46 Crs. DII: 3532.61 Crs. *MTD* FII: -5285.46 Crs. DII: 3532.61 Crs. *F&O CUES* FIIs stance on index futures were bearish in the previous session. They have added 9K short contracts. FIIs net position on index futures now stand at 184K short contracts. On the option front, 23000 strike will continue to act as support as this strike has significant put open interest. On the upside, 23500 strike has significant call open interest and therefore will act as resistance. *UPCOMING CORPORATE EVENTS* *Date: 05-02-2025* CUMMINSIND: Financial Results/Dividend GUJGASLTD: Financial Results NAUKRI: Financial Results PAGEIND: Financial Results/Dividend SOLARINDS: Financial Results ZYDUSLIFE: Financial Results *Date: 06-02-2025* APOLLOTYRE: Financial Results AUROPHARMA: Financial Results BHARTIARTL: Financial Results BRITANNIA: Financial Results *New 52 Week High Low Data* *Large Cap:* New 52 Week Highs: 5 New 52 Week Lows: 4 *Mid Cap:* New 52 Week Highs: 1 New 52 Week Lows: 5 *Small Cap:* New 52 Week Highs: 1 New 52 Week Lows: 5 *NIFTY500:* New 52 Week Highs: 7 New 52 Week Lows: 14