Morning Snippet - 10th Feb 2025 *Index Observation* After a breakout above its bullish head and shoulder pattern Nifty is on its way to retest the 200 DMA resistance above 24k mark ending this eventful fortnight with the digestion of Delhi State election outcome. The market has so far absorbed a fresh union budget, FOMC meet outcome, the RBI MPC rate cut last week and now Delhi election outcome. The index continues to remain in a pullback rally unless a weekly close above 24100 is not confirmed. Hence, for now a retest of 24000-24100 continues to remain on track for the index with 23400 acting as immediate support. Bank Nifty had a wide range post the rate cut by RBI on Friday, while it retested the support zone of 49800 which had previously been acting as a resistance of the ‘W’ pattern on the index. Early last week, the index broke out from a month wide consolidation aiming for 50500/50900 on the upside. These levels continue to be insight for the index to be reclaimed this month. Bank Nifty’s weekly closing has also above its previous week’s high indicating buyers interest for the index. 49500 is now set to act as an immediate support zone. Similar to Nifty, BSE Sensex has also witnessed past 3 consecutive days with minor cuts. This index having completed its target levels of 78600 has shown early signs of furthering higher for 79500. We had highlighted on Friday that a dip below 78k should be used to buy for mentioned targets while support zone now stands at 77400 on downside. Broadly all the mentioned 3 leading indices have ended above its previous day’s low despite briefly breaking below the same in Friday’s trade. _BSE Sensex weekly expiry is set for Tuesday ._ *Interesting Observation* _India 10-Year Yield Analysis- Key technical signals in play_ India 10 year yields fell to the bottom of a falling channel and rebounded sharply following the RBI policy outcome. This reaction was largely anticipated, as the charts had already indicated multiple reversal signals. 1. A 50% retracement of the rally provided support, causing a pause in the declining yield trajectory. 2. Positive divergence suggested that the new low in yields lacked momentum, leading to a triple positive divergence on the charts. 3. A broadening pattern formation further indicated a potential reversal in yields. Additionally, after the rate cut, the RBI stated that they would maintain a neutral stance, implying that no further cuts are expected. This led to a rise in bond yields. Going forward, unless the rupee appreciates and inflation remains stable, further rate cuts are unlikely, as suggested by the current chart structure. *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: -470.39 Crs. DII Cash: 454.2 Crs. *WTD* FII: -10179.4 Crs. DII: 7274.05 Crs. *MTD* FII: -10179.4 Crs. DII: 7274.05 Crs. *F&O CUES* FIIs stance on index futures were bearish in the previous session. They have added 6K short contracts. FIIs net position on index futures now stand at 162K 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, 24000 strike has significant call open interest and therefore will act as resistance. *UPCOMING CORPORATE EVENTS* *Date: 10-02-2025* APOLLOHOSP: Dividend BATAINDIA: Financial Results EICHERMOT: Financial Results ESCORTS: Financial Results GRASIM: Financial Results NATIONALUM: Financial Results/Dividend NYKAA: Financial Results VBL: Financial Results/Dividend *Date: 11-02-2025* BSOFT: Financial Results IDEA: Financial Results IRCTC: Financial Results/Dividend LUPIN: Financial Results/Other business matters NBCC: Financial Results/Dividend SAIL: Financial Results VEDL: Fund Raising *New 52 Week High Low Data* *Large Cap:* New 52 Week Highs: 1 New 52 Week Lows: 0 *Mid Cap:* New 52 Week Highs: 1 New 52 Week Lows: 4 *Small Cap:* New 52 Week Highs: 0 New 52 Week Lows: 5 *NIFTY500:* New 52 Week Highs: 2 New 52 Week Lows: 9