Late rebound pushes Nifty to 25,700; Markets remain on edge

Welcome to Aftermarket Report, a newsletter where we do a quick daily wrap-up of what happened in the markets, both in India and globally.

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In our latest episode of In The Money by Zerodha video series, we break down why the human brain is wired to prioritise negative experiences, how loss aversion shapes behaviour, and why media platforms naturally amplify fear over nuance—linking evolutionary survival instincts with modern information overload and market behaviour. Bringing this into trading and investing, we examine how pessimistic narratives skew decision-making, why losses linger longer than wins, and how constant exposure to negative content can quietly distort judgment. We then share practical ways to filter noise, add context, and build better information hygiene so fear doesn’t end up driving financial decisions.

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Market Overview

Nifty opened with a 37-point gap-down at 25,606, tracking weak global cues amid a tech-led sell-off across markets. The index slipped further in the opening hour and remained under pressure through the morning session, extending losses toward the 25,500 zone as sentiment stayed cautious, even as the RBI policy was announced with rates left unchanged.

After 11 AM, Nifty staged a steady rebound toward the 25,620–25,625 zone, but the recovery was short-lived. Selling resurfaced soon after, dragging the index back to the 25,530 area. From 1 PM onward, the index recovered once again, climbing steadily back toward 25,620–25,625 by 2:30 PM. Momentum strengthened sharply in the final hour, with Nifty pushing into the 25,700 zone. The index eventually closed near the day’s highs at 25,693.70, marking a strong comeback from intraday lows and a clear shift toward dip-buying after early weakness.

Looking ahead, markets are likely to remain sensitive to global risk appetite, ongoing Q3 earnings, and further clarity on the India–U.S. trade deal announced last night.

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Broader Market Performance:

The broader market had a mixed session tilted towards bearish bias today. Of the 3,239 stocks that traded on the NSE, 1,340 advanced, 1,779 declined, and 120 remained unchanged.

Sectoral Performance:

Nifty FMCG was the top gainer today, up 2.27%, while Nifty IT was the top loser, down 1.47%. Overall, 7 sectors closed in the green, and 5 sectors ended in the red, showing a mixed but slightly positive sectoral breadth.

Here’s the trend of FII-DII activity from the last 5 days:

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Change in OI for the day

The following is the change in OI for Nifty contracts expiring on 10th February:

• The maximum Call Open Interest (OI) is observed at 26,000, followed by 25,800, indicating potential resistance at the 25,800 -25,900 levels.

• The maximum Put Open Interest (OI) is observed at 25,500, followed by 25,600, suggesting support at 25,600-25,500.

Note: OI is subject to multiple interpretations; however, generally, an increase in Call OI indicates resistance in a falling market, while an increase in Put OI indicates support in a rising market.

Source: Sensibull

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Tijori is an investment research platform that has constructed niche indices for various themes and sub-sectors. They help you understand the market performance of narrow slices of the market. You can also track the Promoter buying and other interesting stuff, like Capex activity by the companies in the Tijori App’s idea dashboard

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What’s happening in India

The Reserve Bank of India has kept the repo rate unchanged at 5.25%, with the MPC taking the decision unanimously. The RBI slightly raised its CPI inflation outlook for Q1 and Q2 of FY27 to 4.0% and 4.2%, mainly due to higher precious metal prices, while also revising GDP growth projections to 6.9% and 7.0% for the same period. Dive deeper

The rupee weakened 36 paise to close at 90.70 against the US dollar, pressured by geopolitical uncertainty surrounding US-Iran nuclear talks and a sharp surge in global crude oil prices. Dive deeper

PFC acquired 52.63% of the government's stake in REC Limited, making REC its subsidiary following Cabinet Committee on Economic Affairs approval. The strategic acquisition aligns with the Union Budget 2026-27's vision for NBFCs to enhance credit distribution and leverage technology for operational efficiency. Dive deeper

Life Insurance Corporation jumped over 7% after the insurer reported a 17% year-on-year rise in Q3 net profit to ₹12,958 crore, driven by growth in new business and investment income. Net premium income also increased to ₹1,25,613 crore from ₹1,06,891 crore a year earlier. Dive deeper

Cigarette stocks ITC, Godfrey Phillips India, and VST Industries surged 5–10% after reports said companies raised prices to pass on the recent tax hike. The rally was also aided by value buying after a sharp correction triggered by the cigarette taxation overhaul announced on December 31 and implemented from February. Dive deeper

Tata Steel reported a 13.3% decline in consolidated net profit to ₹2,689 crore in Q3 FY26, down from ₹3,102 crore in the previous quarter. Revenue from operations fell 3% sequentially to ₹57,002 crore from ₹58,689 crore in Q2 FY26. Dive deeper

MRF reported a more than two-fold jump in consolidated net profit to ₹692 crore in Q3 FY26, up from ₹315 crore in the same quarter last year, driven by strong OEM and replacement sales. Revenue from operations rose to ₹8,050 crore from ₹7,001 crore year-on-year, reflecting robust demand across tire segments. Dive deeper

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What’s happening globally

WTI crude traded near $67.5 per barrel on Friday, erasing early gains and heading for its first weekly decline in seven weeks as Middle East supply disruption concerns eased. Markets remained cautious ahead of the outcome of US-Iran nuclear negotiations, which could impact global oil supply dynamics. Dive deeper

Amazon announced plans to increase capital expenditures by over 50% to $200 billion in 2026, joining Big Tech rivals in massive AI infrastructure spending. The aggressive investment plan sent Amazon shares down 8% in after-hours trading as investors weighed the impact of elevated costs on near-term profitability. Dive deeper

Sterling edged toward $1.36 after a volatile week, heading for its sharpest weekly decline against the dollar since late October. The drop was driven by domestic political turbulence and a more dovish-than-expected stance from the Bank of England on interest rates. Dive deeper

Bitcoin rebounded above $65,000 from Friday's two-year low of $60,000 as investors bought the dip following the sharp cryptocurrency selloff in early February. Despite the recovery, Bitcoin remains down 30% year-to-date and is trading at roughly half its record high from four months ago amid a broader retreat from speculative assets. Dive deeper

The FAO Food Price Index slipped 0.4% to 123.9 points in January 2026, marking a fifth consecutive monthly decline and a fresh low level since August 2024. Dive deeper

Germany's exports surged 4.0% month-on-month to a 20-month high of €133.3 billion in December 2025, far exceeding forecasts of 1.0% growth, driven by strong demand from both EU and non-EU markets. Shipments to the US jumped 8.9%, while exports to China rose 10.7% and the UK increased 14.6%, lifting full-year 2025 exports to €1.57 trillion, up 1.0% from 2024. Dive deeper

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Management chatter

In this section, we highlight interesting comments made by the management of major companies and policymakers from the Indian and Global Economies.

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Reserve Bank Governor Sanjay Malhotra, on Interest rate trajectory and recent trade deals:

"The policy rates will continue to be at low levels for a long period of time (and) they will go down even further."

“These (recent trade deals), along with other factors, could add up to 20 basis points to the country's GDP growth.” - Link

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🧑🏻‍💻Have you checked out The Chatter?

Every week, we listen to the big Indian earnings calls—Reliance, HDFC Bank, and even smaller logistics firms—and copy the full transcripts. We then remove the fluff and keep only the sentences that could move a share price: a surprise price hike, a cut-back on factory spending, a warning about weak monsoon sales, or a hint from management on RBI liquidity. We add a quick, one-line explainer and a timestamp so you can trace the quote back to the call. The whole thing lands in your inbox as one sharp page of facts you can read in three minutes—no 40-page decks, no jargon, just the hard stuff that matters for your trades and your macro view.

Go check out The Chatter here.

So, we’re now on Reddit!

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So, do join us on the subreddit, chat all things markets and finance, tell us what you like about our content, and where we can improve! Here’s the link — alternatively, you can search r/marketsbyzerodha on Reddit.

See you there!

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Calendars

In the coming days, we have the following significant events, quarterly results, and corporate actions:

That’s it from us for today. We’d love to hear your feedback in the comments, and feel free to share this with your friends to spread the word!