Weekly Technical Signal Overview

Between 2 and 6 February 2026, the market registered a total of 398 technical pattern signals, dominated by bullish indicators. Of these, 331 were bullish signals, including 12 golden crosses and 319 gap ups, while bearish signals numbered 67, comprising 39 death crosses and 28 gap downs. Notably, no fall-from-peak patterns were recorded, suggesting stocks largely maintained proximity to recent highs without significant retracements.

The golden cross, a bullish moving average crossover where the 50-day moving average crosses above the 200-day moving average, is traditionally viewed as a strong buy signal indicating upward momentum. Conversely, the death cross, where the 50-day moving average crosses below the 200-day moving average, signals potential bearish trends. Gap trading, involving significant price gaps at market open confirmed by volume, further underscores market sentiment shifts. The absence of fall-from-peak events this week highlights sustained strength without profit-booking pressure.

Market Cap and Sector Distribution

Breaking down signals by market capitalisation reveals a bullish tilt across large-cap, mid-cap, and small-cap stocks. Large-cap stocks accounted for 39 signals with 32 bullish and 7 bearish, mid-caps showed 47 signals with 42 bullish and 5 bearish, while small-caps dominated with 287 signals, 249 bullish and 38 bearish. Micro-cap stocks diverged, showing a bearish-leaning pattern with 25 signals, 8 bullish and 17 bearish.

Sector-wise, Pharmaceuticals & Biotechnology led with 35 signals (31 bullish), followed by Auto Components & Equipments with 30 signals (27 bullish), and Garments & Apparels with 29 signals (28 bullish). Industrial Manufacturing and Computers - Software & Consulting also featured prominently, though the latter showed a higher proportion of bearish signals (8 bearish out of 19 total), indicating sector-specific caution.

Featured Technical Patterns and Stocks

The 12 golden cross signals this week span a diverse range of sectors and market caps, including Oil & Natural Gas Corporation Ltd (Oil, large-cap), Varun Beverages Ltd (Beverages, large-cap), Mangalam Cement Ltd (Cement, small-cap), and Ind-Swift Laboratories Ltd (Pharmaceuticals, micro-cap). These crossovers suggest emerging bullish momentum, particularly in sectors like oil, beverages, and pharmaceuticals.

Death cross signals, more numerous at 39, are concentrated notably in Computers - Software & Consulting, with companies such as Bajaj Finserv Ltd (holding company, large-cap), Coromandel International Ltd (fertilisers, mid-cap), and ICICI Lombard General Insurance Company Ltd (insurance, mid-cap) featuring prominently. This concentration indicates sector-specific caution, possibly reflecting profit-taking or consolidation phases.

Gap ups, the most frequent pattern with 319 occurrences, include large-cap names like Lupin Ltd (pharmaceuticals), Shriram Finance Ltd (NBFC), Eicher Motors Ltd (automobiles), and Larsen & Toubro Ltd (construction). These gaps often signal strong buying interest and can precede sustained rallies if supported by volume. Conversely, gap downs numbered 28, with Infosys Ltd and LTI Mindtree Ltd among the notable large-cap stocks showing bearish openings.

Sector and Market Cap Context: Why These Patterns Emerged

The predominance of bullish signals across small and mid-cap stocks suggests renewed investor confidence in growth-oriented segments, possibly driven by improving earnings outlooks and sector-specific catalysts. Pharmaceuticals & Biotechnology’s strong bullish activity aligns with ongoing innovation and regulatory approvals supporting sector momentum. Auto Components & Equipments and Garments & Apparels also benefited from positive demand trends and export opportunities.

Large-cap stocks showed a bullish lean but with a more balanced mix of bearish signals, reflecting selective profit-taking or technical consolidation in heavyweight names. The Computers - Software & Consulting sector’s bearish signals may be attributed to valuation pressures or sector rotation, warranting close monitoring.

The absence of fall-from-peak patterns is notable, indicating that stocks are generally holding near recent highs without significant profit-booking or technical corrections. This suggests a market environment where investors remain optimistic, and technical support levels are holding firm.

Forward-Looking Technical Implications

Looking ahead, the strong prevalence of golden crosses and gap ups suggests that momentum may continue to favour bullish setups, especially in sectors like pharmaceuticals, auto components, and garments. Investors should watch for confirmation of these patterns through volume support and sustained price action above key moving averages.

Conversely, the death cross signals concentrated in Computers - Software & Consulting warrant caution. These stocks may face near-term resistance or consolidation, and traders should monitor for potential reversals or further downside if support levels fail.

Market cap divergence in technical patterns highlights the importance of tailored strategies: small and mid-cap stocks appear poised for continued strength, while large caps may experience selective profit-taking or technical pauses. The absence of fall-from-peak signals reinforces the current market’s resilience, but vigilance is advised as technical levels approach critical resistance points.

Key technical levels to watch include the 200-day moving average for stocks exhibiting golden crosses, as sustained trading above this level often confirms bullish trends. Gap fills, where prices retrace to close the gap, should also be monitored as potential support or resistance zones.

Overall, this week’s technical pattern landscape suggests a market environment leaning towards continuation of bullish momentum, tempered by sector-specific caution and the need for volume confirmation to validate breakouts.

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