The NSE Nifty 50 is poised for a volatile session on the day before the Union Budget, as traders assess the market’s ability to sustain its recent uptrend.

The immediate support is seen at 23,150, while the key resistance stands at 23,450, with a breakout above this level potentially strengthening bullish momentum, according to analysts.

Technically, after a promising pullback rally, the market is holding an uptrend continuation formation, which is largely positive. A bullish candle on the daily charts and a higher bottom formation on the intraday charts indicate further uptrend potential from the current levels, according to Shrikant Chouhan, head of equity research at Kotak Securities.

“For trend-following traders, 23,150 would be the key support level. Above this level, the pullback formation is likely to continue. On the upside, it could bounce back to 23,400–23,450,” Chouhan said.

“Conversely, if it falls below 23,150, the uptrend would be vulnerable. Below this level, traders may prefer to exit their long positions,” he advised.

The market will likely continue to be driven by volatility due to the Budget at the weekend and the Reserve Bank of India’s monetary-policy-committee meeting next week, according to Ameya Ranadive, senior technical analyst at StoxBox.

The Bank Nifty index settled positively at 49,312. “On the technical front, Bank Nifty, on a daily chart, has formed a green candle, indicating strength, according to Hrishikesh Yedve, research analyst at Asit C Mehta Investment Interrmediates Ltd.

“Moreover, Bank Nifty index has crossed and sustained above its 21-Days Simple Moving Average or 21-DSMA of 49,200, making it an immediate support level, while the previous breakdown point of 49,650 which will act as a key hurdle,” Yedve said. “As long as Bank Nifty holds above 49,200, bullish momentum is likely to continue, supporting a buy-on-dips approach.”

FII/DII Activity

Foreign portfolio investors stayed net sellers of Indian equities for the 20th straight session on Wednesday, while domestic institutional investors were net buyers for the 31st consecutive session.

FPIs sold stocks worth Rs 4,582.95 crore and domestic institutional investors mopped up equities worth Rs 2,165.89 crore, according to provisional data from the National Stock Exchange.

F&O Action

The Nifty February futures were up 0.72% to 23,446 at a premium of 196.5 points, with the open interest up by 24.27%.

The open interest distribution for the Nifty 50 Feb. 06 expiry series indicated most activity at 23,550 call strikes, with the 24,550 put strikes having maximum open interest.

Market Recap

The Indian equity benchmark indices closed higher for three days in a row, as BEL and Power Grid Corp. stocks led gains.

The NSE Nifty 50 ended 86.40 points, or 0.37% up at 23,249.50, and the 30-stock BSE Sensex ended 226.85 points, or 0.30% higher at 76,759.81. The NSE Nifty Bank also closed higher at 49,311.95, up 0.30%.

Major Stocks In News

  • Biocon: The board has approved the purchase of a 1.5% stake in Biocon Biologics for Rs 550 crore. Post this purchase, the company’s stake in Biocon Biologics will be 90.2%.

  • Wipro: The company entered into a five-year, multimillion-dollar contract with Etihad Airways for IT transformation and cost optimisation.

  • ICICI Lombard: The company received a GST demand order of Rs 62 crore, including penalty & interest.

  • Ircon International: The company received an EPC contract in joint venture with AMRIL for construction of rigid pavement and lined drain of 122 km of roads in Manipur. The contract has an execution period of 36 months, for a consideration of Rs 164 crore.

  • Paradeep Phosphates: The company signed a MoU with the government of Odisha for an investment of Rs 4,000 crore to increase the phosphatic fertiliser manufacturing capacity over 5 years.

Money Market

The Indian rupee continued its downward trend against the US dollar, weakening by seven paise to close at 86.63 on Thursday.

The domestic currency opened weaker against the US dollar, declining by 3 paise to start at 86.58, according to Bloomberg data. This follows a close at 86.56 on Wednesday, marking a consistent decline over the past few days.

Global Cues 

Stocks in the Asia-Pacific region traded mixed on Friday as Wall Street remained volatile, given US President Donald Trump’s threat to impose tariffs on imports from Mexico and Canada.

Australia’s S&P/ASX 200 opened higher with the benchmark index advancing by 0.5%, or 42.4 points, to 8,536.1 as of 6:50 a.m. Japan’s Nikkei was down 56 points, or 0.16% at 39,579. Stock markets in China, Hong Kong and Taiwan remained closed for the Lunar New Year holiday. 

US futures climbed on positive first-quarter results from Apple Inc. The tech giant’s first revenue came in at $124.3 billion versus the estimate of $124.1 billion.

The Dollar index rose while currencies in Mexico and Canada slumped, as Trump said he would follow through on his threat to impose 25% tariffs on imports as early as Saturday. Trump also said that China is going to end up paying a tariff as well.

The dollar index — which tracks the greenback’s performance against a basket of 10 leading global currencies — was 0.34% down at 108.16.

Meanwhile, the US economy ended 2024 on a strong note. Inflation-adjusted gross domestic product increased an annualised 2.3% in the fourth quarter after rising 3.1% in the prior three-month period.

Wall Street ended positive after the initial decline pressure led by Trump’s tariff threads. The S&P 500 and the tech-heavy Nasdaq Composite rose 0.53% and 0.25%, respectively. The Dow Jones Industrial Average advanced 0.38%.

All eyes will turn to monthly US household spending data on Friday and later the Indian Union Budget on Saturday.

Crude oil prices rose following tariff threats. The Brent crude was up 0.61% at $77.34 a barrel as of 7:00 a.m. IST, and the West Texas Intermediate was up 0.80% at $73.31.

. Read more on Markets by NDTV Profit.The market will likely continue to be driven by volatility due to the budget and the Reserve Bank of India’s monetary-policy-committee meeting next week.  Read MoreMarkets, Business, Notifications, Budget 

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