Range-bound Nifty as IT sell-off weighs on sentiment
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.
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.
Market Overview
Nifty opened with a 52-point gap-down at 25,675 and witnessed sharp volatility in the opening minutes, swinging between 25,563 on the downside and 25,770 on the upside within the first 20 minutes of trade. After briefly consolidating in the 25,770–25,800 zone, the index gradually drifted lower toward the 25,700 level once again. IT stocks bore the brunt of the selling, with the IT index sliding nearly 6% after global IT services stocks sold off sharply following Anthropic’s launch of a new workplace productivity tool.
In the second half, sentiment improved gradually as buying interest emerged post noon, helping the index recover steadily. Nifty reclaimed the 25,750 mark and extended gains into the afternoon, testing the 25,800–25,810 zone around 2:30 PM. However, profit-taking in the final 30 minutes led to a mild pullback from the highs. The index eventually closed at 25,776.50, ending marginally lower on the day and marking a volatile, range-bound session characterised by sharp intraday swings and consolidation after recent strong moves.
Looking ahead, markets are likely to remain sensitive to global risk appetite, ongoing Q3 earnings, the upcoming RBI policy, and further clarity on the India–U.S. trade deal announced last night.
Broader Market Performance:
The broader market had a strong bullish session today. Of the 3,294 stocks that traded on the NSE, 2,152 advanced, 1,046 declined, and 96 remained unchanged.
Sectoral Performance:
Nifty Consumer Durables was the top gainer today, rising 2.66%, while Nifty IT was the top loser with a sharp decline of 5.87%. Out of the 12 sectoral indices, 9 ended in the green and 3 closed in the red.
Here’s the trend of FII-DII activity from the last 5 days:
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 25,900 -26,000 levels.
The maximum Put Open Interest (OI) is observed at 25,500, followed by 25,800 & 25,700, 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
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
What’s happening in India
Indian IT stocks fell sharply by 5-7% after Anthropic launched AI plug-ins that raised concerns over automation reducing demand for staffing-intensive services. Dive deeper
India’s services sector maintained strong momentum in January, with the HSBC India Services PMI edging up to 58.5 from 58.0 in December, data compiled by S&P Global showed. Growth remained robust, supported by strong demand, new business inflows, and continued technology investment. Dive deeper
Hindustan Aeronautics Ltd fell as much as 8.3% to an intraday low of ₹4,100 after it was not shortlisted to manufacture next-generation fighter jets. The shortlist included Larsen & Toubro, Bharat Forge, and Tata Advanced Systems. Dive deeper
Alphabet is considering a major expansion in India, with plans to add new office space in Bengaluru that could significantly increase its local workforce. Dive deeper
Bajaj Finserv reported a 24% year-on-year jump in Q3 consolidated revenue to ₹39,708 crore, while consolidated net profit remained flat at ₹2,229 crore. Dive deeper
Indian government bonds edged higher as investors positioned ahead of the RBI’s debt purchase and policy decisions this week. Dive deeper
Bharat Coking Coal reported a quarterly loss in Q3, with revenue declining to ₹2,783 crore. The company’s shares came into focus following the weak earnings print. Dive deeper
Nazara Technologies reported a 35% year-on-year decline in Q3 net profit, with revenue falling 24%. The results reflected weaker performance across key gaming and esports segments. Dive deeper
SEBI has proposed an overhaul of the ‘fit and proper person’ framework for market intermediaries to improve clarity and fairness. Dive deeper
Indian Energy Exchange (IEX) shares drew attention after the company reported record electricity trading volumes in January, reflecting strong activity and improved liquidity on the power trading platform. Dive deeper
Tata Power reported a 25% year-on-year decline in consolidated net profit to ₹772 crore for Q3 FY26. Revenue from operations fell 9% to ₹13,948 crore compared with the year-ago quarter. Dive deeper
What’s happening globally
WTI crude rose toward $64 per barrel as renewed US–Iran tensions lifted geopolitical risk premiums. Prices were also supported by a sharp draw in US crude inventories and expectations of firmer demand from March. Dive deeper
Gold climbed back above $5,000 per ounce on safe-haven demand and dip buying after a sharp pullback earlier in the week. Dive deeper
Copper slipped about 1% to around $6 per pound as rising inventories and soft physical demand weighed on prices. Dive deeper
US stock futures were steady as investors digested mixed earnings after a tech-led selloff. Losses in AI and semiconductor stocks weighed on sentiment, with focus shifting to upcoming results from Alphabet and Amazon. Dive deeper
Eurozone inflation eased to 1.7% in January, its lowest level since 2024, helped by slower services inflation and falling energy prices. Dive deeper
Germany’s 30-year bond yield climbed to 3.55%, the highest since 2011, amid heavy government borrowing to fund infrastructure and defence. Markets are also awaiting the ECB meeting for guidance on policy amid a stronger euro. Dive deeper
China’s services PMI rose to 52.3 in January, marking the strongest expansion since October. Growth was driven by higher new business and exports, though business sentiment softened amid global growth concerns. Dive deeper
The yen weakened past 156 per dollar ahead of Japan’s snap election, pressured by expectations of expansionary fiscal policies. Dive deeper
Management chatter
In this section, we highlight interesting comments made by the management of major companies and policymakers from the Indian and Global Economies.
Tuhin Kanta Pandey, Chairman, SEBI, on equity derivatives regulation:
“We are taking a measured approach and calibrating our response, ensuring that the equity derivatives framework evolves in a balanced way.”
“We want to ensure that markets remain competitive and efficient while also mitigating systemic risks.”
“Regulatory interventions will be data-driven and phased so that they support market development without creating unnecessary disruption.” - Link
Piyush Goyal, Union Commerce and Industry Minister, on India–US trade deal in Parliament:
“Keeping the important interests of both sides in mind, it is natural that both sides would want to safeguard their respective important and sensitive areas and ensure the best possible results.”
“During the discussions, the Indian side was successful in safeguarding the interests of its sensitive sectors, especially agriculture and dairy.”
“With a year of discussions, the two sides succeeded in giving the final form to various sectors of the bilateral trade agreement.” - Link
🧑🏻💻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!
We love engaging with the perspectives of readers like you. So we asked ourselves - why not make a proper free-for-all forum where people can engage with us and each other? And what’s a better, nerdier place to do that than Reddit?
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!
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!
Really strong coverage of yesterdays session dynamics. The observation about IT sell-off pricing in displacement risk ahead of actual revenue hits is spot-on, but whats intresting is how broader markets still advanced with 2152 gainers. Reminds me of 2019 when defensives held despite tech jitters, those rotations tend to be sector-specific rather than systemic.