Indian equity benchmarks are expected to open Friday’s session negatively as investors brace for volatility ahead of the Union Budget on February 1. GIFT Nifty trends also suggest a weak start, with the index trading around 25,435, with a discount of around 101 points from its previous close of Nifty futures.
On Thursday, benchmarks managed to extend their rebound. The Sensex advanced 221.69 points or 0.27% to settle at 82,566.37, while the Nifty 50 rose 76.15 points or 0.30% to close at 25,418.90, reclaiming the psychologically important 25,400 level.
The ongoing pullback of Sensex shows that the market is operating within its larger upward trend.
Analysts note that the structure remains positive as long as the index stays within the 82 200-81 700 range.
The market could advance toward 83,100-83,300 if it breaks through 82,800, but a drop below 81,700 may weaken the bullish setup.
The Nifty 50 on the daily chart formed a bullish candle with a long lower shadow, indicating dip buying near key moving averages.
The immediate level of support stands at 25,300 while the resistance is at 25,500-25,600.
A strong breakout above this zone could confirm a short-term bottom and potentially push the index towards 25,800-26,000.
Analysts warn volatility may persist unless there is clarity from the Budget. The derivatives market shows heavy call writing at 25,500 and significant put writing at 25,300.
The Bank Nifty closed Thursday at 59,957.85, up 0.60%, and remains less than 1% away from its all-time high.
Strong momentum indicators and support from key moving averages keep the outlook positive.
Upside targets are seen at 60,250-60,500, while 59,500-59,400 is expected to act as a crucial support zone.
The Economic Survey’s projection of 6.8-7.2% GDP growth for FY27 has provided a supportive macro backdrop.
The US Federal Reserve maintained its interest rate at the current level, supporting the ongoing uncertainty. The Indian rupee reached an all-time low of 92 against the US dollar, while Brent crude prices increased to above $70 per barrel amid heightened geopolitical tensions.
The Indian stock market is expected to experience both range-bound trading and volatile price movements on January 30, as investors proceed with caution ahead of the Union Budget announcement.
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