_Morning snippet:- 06 February 2025_ *Index Observation* A minor pause in momentum ahead of its weekly expiry and RBI policy outcome on Friday was seen in index trading yesterday. Nifty traded in half a percent band without negating any structure on daily charts as it continues to eye for reclaiming 23800 and there after a test of its 200 DMA resistance at 24k. The inverted bullish head and shoulder is in play with neckline acting as support zone at 23600 odd for now. Bank Nifty remained steady on track and has reclaimed 50500 which was open from the past 1 week odd. Given the momentum this could extended marginally forward for 50850 ahead of the RBI MPC outcome tomorrow as the index continues to find buyers after the breakout at 49509 which also acts as a fresh support for the index now. BSE Sensex has completed its target levels of 78600 which stood open since last week. With a strong closing in its weekly expiry trading session on Tuesday - the index has shown early signs of furthering higher for 79500 odd while a dip below 78000 now should be used to add in this short term short covering rally. _Nifty weekly expiry is scheduled for today while RBI’s MPC meet outcome is scheduled for tomorrow ._ *Interesting Observation* *Broader Market Participation to gain traction!* The S&P Equal-Weighted vs. S&P Market Cap-Weighted ratio has reached a key inflection point, historically signaling shifts in market leadership. In past cycles, similar lows have preceded the outperformance of mid- and small-cap stocks over large caps, suggesting a potential broadening of market participation. However, a rising ratio does not always indicate a market rally—at times, large caps have simply declined more than smaller stocks. That said, the mid-2024 reversal sparked renewed investor enthusiasm beyond mega-cap stocks, leading to a more inclusive rally. If the ratio turns higher from this level, it could signal a shift in momentum toward a more balanced market, reducing reliance on a handful of dominant stocks. Investors should closely watch this indicator for potential opportunities in mid- and small-cap equities. *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: -1682.83 Crs. DII Cash: 996.28 Crs. *WTD* FII: -6159.06 Crs. DII: 4098.19 Crs. *MTD* FII: -6159.06 Crs. DII: 4098.19 Crs. *F&O CUES* FIIs stance on index futures were bullish in the previous session. They have added 4K long contracts. FIIs net position on index futures now stand at 149K short contracts. On the option front, 23500 strike will continue to act as support as this strike has significant put open interest. On the upside, 24000 strike has significant call open interest and therefore will act as resistance. *UPCOMING CORPORATE EVENTS* *Date: 07-02-2025* ALKEM: Financial Results/Dividend DELHIVERY: Financial Results LICI: Financial Results M&M: Financial Results/Other business matters NHPC: Financial Results/Dividend OIL: Financial Results SUNTV: Financial Results/Dividend *Date: 08-02-2025* HINDCOPPER: Financial Results *New 52 Week High Low Data* *Large Cap:* New 52 Week Highs: 4 New 52 Week Lows: 0 *Mid Cap:* New 52 Week Highs: 2 New 52 Week Lows: 2 *Small Cap:* New 52 Week Highs: 1 New 52 Week Lows: 2 *NIFTY500:* New 52 Week Highs: 7 New 52 Week Lows: 4