Top 5 Stocks on Radar Amid Market Correction: ICICI Prudential, Indian Bank & Sectoral Signals | RSI, MACD & Volume Analysis
Updated: 08 February 2026
Category: Stocks on Radar | Market Analysis
By CapitalKeeper Research Desk
Explore the top five stocks to watch including ICICI Prudential and Indian Bank with detailed RSI, MACD, and volume analysis. Sector outlook on Nifty FMCG, Energy, and Nifty trend with key support and resistance zones.
Top Five Stocks on Radar Amid Market Correction: Technical Outlook with RSI, MACD & Volume Insights
The Indian stock market continues to move through a phase of cautious consolidation as indices react to macro cues, sectoral rotations, and technical resistance levels. Despite positive sentiment following developments like global trade optimism, the benchmark indices are showing signs of fatigue near resistance zones. A gap-up opening followed by selling pressure indicates that traders are still cautious at higher levels.
At present, the market appears to be in a corrective phase rather than a strong trending structure. The broader outlook suggests a “sell on rise” approach for positional trades until key resistance levels are convincingly broken. Technical indicators like RSI divergence, MACD flattening, and volume behavior are hinting at selective opportunities rather than broad-based rallies.
In this environment, a few stocks are forming interesting setups. Some are holding strong near support zones, while others are showing early signs of reversal or consolidation before the next move. This report focuses on five important market elements that traders and investors should closely track in the coming weeks.
Market Overview: Index Positioning & Technical Structure
Nifty has been trading with volatility after a gap-up opening triggered by positive sentiment surrounding international developments. However, the inability to sustain higher levels suggests supply pressure near resistance zones.
From a wave perspective, the index seems to be moving in a corrective rise phase. This means rallies could face selling pressure unless strong institutional buying emerges.
Technically:
- RSI is flattening near mid-levels
- MACD momentum is slowing
- Volume is inconsistent at higher levels
- Market is still several hundred points away from all-time highs
This supports the positional trading view where selling on rallies may continue to dominate until a clear breakout structure forms.
Top Stocks & Sector Watchlist
1. ICICI Prudential (CMP: 651)
ICICI Prudential is currently trading near an important technical zone where both resistance and support structures are clearly defined. The stock has shown stability despite market volatility and is respecting its trendline support.
Key Technical Levels
- Resistance zone: 695–710
- Trendline support: 610–615
Technical Analysis
RSI:
The RSI is hovering near neutral territory, indicating consolidation rather than aggressive momentum. This often precedes a directional breakout.
MACD:
MACD is flattening, showing loss of momentum after a recent move. However, it is not indicating strong bearish pressure yet.
Volume:
Volumes remain stable near support, which suggests accumulation interest at lower levels.
If the stock manages to sustain above resistance levels, momentum can expand. However, a breakdown below trendline support could shift sentiment quickly.
2. Indian Bank (CMP: 871)
Indian Bank is displaying early warning signs on the daily timeframe. The stock is currently positioned near its trendline support area, making this a crucial zone to monitor.
Key Technical Zones
- Trendline support: 810–820
- Major support if breakdown occurs: 580–600
Technical Analysis
RSI Divergence:
A negative divergence has appeared on the daily chart. This indicates weakening strength despite price holding at elevated levels.
MACD:
Momentum has started slowing, suggesting that buyers are losing dominance.
Volume Behavior:
Recent sessions have shown declining volume near highs, another sign of exhaustion.
If the trendline support fails, the stock could see a deeper correction toward long-term support levels. This setup is best treated as a watchlist candidate rather than an immediate opportunity.
3. Nifty FMCG Sector Analysis
The FMCG sector has already seen a significant correction from its peak levels.
Key Observations
- Index was trading around 53,000
- 38.2% retracement level lies near 42,000
- Current correction has already pushed prices down toward the 49,000 zone
This reflects an approximate 8% correction so far.
Technical Perspective
RSI:
The RSI has cooled down from overbought zones and is moving toward balance, which is healthy for long-term stability.
MACD:
MACD indicates a cooling trend rather than a strong bearish phase.
Volume:
Institutional participation remains visible during dips, suggesting defensive sector interest.
The sector may consolidate before attempting another upward move.
4. Nifty Energy Sector Outlook
The energy index is currently approaching a major resistance zone while also nearing the 50% Fibonacci retracement level. This is a technically important area where trends often reverse or pause.
Technical Signals
- If the index fails to cross 50% retracement convincingly
- And also fails near the 61.8% retracement zone
- Then downside pressure could increase significantly
There is a strong possibility of the index revisiting lower levels below the 29,000 mark if resistance holds.
RSI & MACD Insight:
- RSI is approaching overbought territory
- MACD momentum is slowing
This combination suggests caution near resistance.
5. Nifty Index Hourly Structure
The hourly chart gives a deeper insight into short-term movements and trader positioning.
Key Observations
- Resistance levels are acting as strong supply zones
- Wave structure indicates corrective rise
- Price is failing to sustain rallies
This confirms the positional strategy many traders are adopting:
Sell on rise until strong breakout confirmation appears.
Even after positive global cues and trade-related optimism, the index is still trading significantly below its all-time high. This indicates that institutional conviction at higher levels is still limited.
Technical Summary Table
| Stock/Index | CMP | Support Zone | Resistance Zone | Technical Signal |
|---|---|---|---|---|
| ICICI Prudential | 651 | 610–615 | 695–710 | Consolidation near support |
| Indian Bank | 871 | 810–820 | — | Negative divergence visible |
| Nifty FMCG | 51882.75 | 49,000 zone | 53,000 zone | Sector correction phase |
| Nifty Energy | 36451.70 | 29,000 zone | 50–61.8% retracement | Resistance pressure |
| Nifty Index | 25693.70 | Hourly support zones | Mentioned resistance | Sell on rise trend |
Indicator-Based Market Interpretation
RSI Analysis
Across multiple stocks and sectors:
- RSI is not in extreme zones
- Momentum is cooling
- Markets are transitioning from bullish to neutral
This suggests consolidation before the next directional move.
MACD Interpretation
- Momentum is slowing in many setups
- Crossovers are flattening
- Early signs of distribution visible
This supports a cautious trading approach.
Volume Behavior
- Volume spikes are seen near supports
- Lower participation near resistance zones
- Smart money likely rotating selectively
Trading Strategy Outlook
Given the current structure:
- Markets are not in a strong uptrend phase
- Sector rotation is visible
- Breakouts are not sustaining strongly
- Sell-on-rise strategy remains relevant for positional traders
Investors may prefer to watch support zones and wait for confirmation rather than chasing momentum.
FAQs
Is the market still bullish?
The long-term trend remains constructive, but the short-term structure indicates consolidation and corrective movements.
Why is RSI divergence important?
RSI divergence often signals weakening momentum before a price correction begins.
What does “sell on rise” mean?
It suggests booking profits at higher levels rather than buying aggressively until strong breakouts occur.
Which sector looks strongest now?
Defensive sectors like FMCG are stabilizing after correction, while energy is facing resistance pressure.
Final Takeaway
The market is entering a phase where patience matters more than aggression. Momentum is selective, resistance zones are strong, and technical indicators are signaling caution. Stocks like ICICI Prudential and Indian Bank are at critical technical points, while sectors like FMCG and Energy are defining their next direction.
This phase is not about chasing rallies but about tracking structures, respecting supports, and preparing for the next major trend once confirmation appears.
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Ranjit Sahoo
Founder & Chief Editor – CapitalKeeper.in
Ranjit Sahoo is the visionary behind CapitalKeeper.in, a leading platform for real-time market insights, technical analysis, and investment strategies. With a strong focus on Nifty, Bank Nifty, sector trends, and commodities, she delivers in-depth research that helps traders and investors make informed decisions.
Passionate about financial literacy, Ranjit blends technical precision with market storytelling, ensuring even complex concepts are accessible to readers of all levels. Her work covers pre-market analysis, intraday strategies, thematic investing, and long-term portfolio trends.
When he’s not decoding charts, Ranjit enjoys exploring coastal getaways and keeping an eye on emerging business themes.
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