India-US Trade Deal: Nifty to Fill Gaps with ‘Buy on Dips’ Mantra

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Analyst reasons that a phase of consolidation is on the anvil for Nifty after the sharp upmove

By S JHA

Mumbai, February 3, 2026 — The announcement of the India-US trade deal sent Sensex soaring on Tuesday. After the heat settled, Nifty lost steam to overwhelm 25800. But sectors shining, the Indian markets per analysts are primed for a momentum play.

Textile sector came all guns blazing on Tuesday. Most of textile scrips were locked in 20 percent upper circuits. The trade deal removed the bear grip over the textile scrips. The likes of Garware Hi-Tech Film, Indo Count, Kitex Garment, Welspun Living, and many more hit the bull’s eye with 20 percent gains on Tuesday.

Among the frontliners, Adani Enterprises and Adani Port led the bull’s charge on the street. Bajaj Finance also fired strongly. Realty sector was the top gainer, with DLF leading the gains.

“The formation of a ‘Double Bottom’ around the 24600 zone along with a positive divergence, indicated a base formation. While prices earlier found strong support near the September lows of 24600, the upside too appears capped near the all-time high zone around 26370,” said Angel One in a market note shared with clients.

It stated that “technically, after such a sharp gap-up move, markets typically undergo a phase of consolidation or attempt to partially fill the gap in the sessions ahead. With prices now trading above all key moving averages and the broader undertone remaining positive, any near-term dip is likely to be bought into.”

The brokerage house advised “a buy-on-dips approach.” “The 25450–25250 zone is seen as an immediate support area. On the flip side, 25900 – 26000 is seen as immediate hurdle,” added Angel One.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company.)