Indian equity markets are expected to open marginally higher on February 2, attempting to stabilise after the sharp Budget-day correction. Early cues from GIFT Nifty point to a mildly positive start, with the index trading near 24,873, Up around 20 points over the previous Nifty futures close.
The domestic equity market experienced heavy selling after the Union Budget was presented because of the increase in Securities Transaction Tax (STT) for F&O trades.
The action created concerns about increased trading expenses which would affect active derivatives traders who make up a large portion of daily market volume.
In Sunday’s session, the Sensex declined 1,546.84 points or 1.88% to 80,722.94, while the Nifty 50 fell 495.20 points or 1.96% to 24,825.45.
Technically, Sensex formed a long bearish candle on daily charts and slipped below its 200-day Simple Moving Average, a key long-term trend indicator.
Immediate resistance exists at the 81,300, aligning with previous breakdown zones. The index will likely experience selling pressure until it below this resistance level.
Support is seen at 80,100 and 79,900, a break below this level would lead to a decline towards 79,600-79,000, representing a 1.5% to 2% potential drop from current levels.
The Nifty 50 decisively broke below the psychological 25,000 level, confirming a bearish continuation characterised by lower highs and lower lows.
Support is seen at 24,500-24,400, while resistance lies at 24,900-25,000. As long as the index remains below 25,200-25,300, the risk-reward favours a sell-on-rallies approach.
A sustained close above 25,300 would be required to neutralise the negative bias and signal short-term trend repair.
The Bank Nifty dropped 2% to 58,417, underperforming frontline indices. The index has slipped below both its 20-day and 50-day EMAs, confirming weakening short-term momentum.
Rejection near the 59,800-60,000 supply zone further reinforced seller dominance. The drift towards the 58,600-58,500 region keeps downside risks high if buying support does not emerge.
Immediate support is seen near 57,800-57,700, while a break below 58,000 could open downside targets of 57,200 and 56,500.
Also Read: 10 Must-Watch Stocks for Intraday Trading in India 2026
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