Amidst the pre-budget euphoria, the Nifty 50 came back into action and bulls cheered again. After a robust Q3, Dr Reddys Lab (+4.57%) and Sun Pharma (+3.34%) rose, and the Nifty Pharma Index (+2.51%) jumped. All sectoral indices ended the day in the green due to short covering and bargain hunting, an analyst said.
The S&P BSE Sensex rose 0.86% or 612.21 points to end at 71,752.11, while the Nifty 50 closed 0.95% or 203.60 points higher to end at 21,725.70.
The PSU Bank index rose 2.28% while State Bank of India gained 2.36%. Bank of Baroda and Punjab National Bank zoomed 5% higher each.
Also Read: Nifty PSU Bank advances for 5th straight day; 11 stocks including BoB, SBI, PNB end in the green
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Ahead of the Lok Sabha elections, Finance Minister Nirmala Sitharaman will present the Interim Budget 2024–2025 today. Experts in the market predict that the government will continue to prioritize capital spending and fiscal consolidation to support the growth momentum, but they do not foresee any significant announcements in the interim budget.
“Positive growth was reflected in Indian markets ahead of the interim budget, although expectations are low, the market foresees a lower fiscal deficit supported by floating tax revenues. The general trend in the market is like a seesaw, and the buy. -on-dips- strategy is effective as of now. The pharmaceutical sector stood out with a positive earnings outlook. Global market indications are mixed ahead of the FOMC meeting, and US 10-year yields were marginally down. An immediate rate cut seems unlikely, but indications of the future trajectory could moderate volatility,” said Vinod Nair, Head of Research, Geojit Financial Services.
Also Read: Stock market today: Nifty 50, Sensex jump around 1% each ahead of Budget 2024, US Fed result
Nifty 50 Outlook
For six consecutive days, Nifty 50 has shown a pattern of alternating between up and down days, reflecting market uncertainty. It seems that the market is waiting for a catalyst for directional trading, with budget days traditionally serving as such triggers. The upcoming session is considered crucial, as it is likely to determine the short-term direction of the market, said Osho Krishan, Mr. Analyst, Technical and Derivatives, Angel One.
Analyzing the chart reveals a trading range between 21,850 on the higher side and 21,400 on the lower side, with 21,200 serving as key support. Both levels were firmly defended, but it is likely that one zone may be broken, leading to a trend move in early February, Krishan explained.
Given the interim nature of the budget, the Finance Minister’s announcements will be closely watched. Historically, interim budgets tend not to include major reforms. However, positive announcements could propel the index past 21850, targeting all-time high levels around 22,100. Conversely, a break below 21,400 and 21,200 may trigger a major sell-off. Expect increased volatility on budget day, and traders advise caution, avoiding excessive risks and waiting for the market to stabilize before making aggressive moves, according to Osho.
“A notable aspect of the day was the active participation of the broader market, particularly in small-cap markets, which experienced notable movements. On a budget day, individual themes can exhibit strong activity, capitalizing on potential announcements. Traders are encouraged to focus on such themes to identify superior opportunities in the coming session,” advised Krishan.
Also Read: Shriram Finance, MTNL and more: Angel One lists 4 top tech stocks for Budget 2024; check full list
Supply Recommendations For Today by Osho Krishan
Computer Age Management Services Ltd (CAMS)
According to Osho, CAMS saw a strong rebound from its near-term exponential moving average (50 DEMA) on the daily time frame and surpassed its previous high swing easily. The recent price movement has been supported by robust volumes, adding to the bullish quotient. At the same time, the counter is on the verge of a decisive breakout and looks set to move in a northerly direction. On the technical front, most of the indicators are in line with the continued momentum, supporting the bullish view.
“Therefore, we recommend BUYING CHAMS around ₹2,870-2,850, maintaining a stop loss of ₹2,732 for positional purpose of ₹3,070–3,100,” Krishan said.
Ingersoll Rand (India)
Osho believes that Ingersoll-Rand (India) was in a stellar bull run, soaring at new highs. The stock just gained traction to claim a lifetime high. The technical structure, with its “Cup and Handle” formation, is building a positive development, and it looks set to continue its upward rally in uncharted territory in the near future. The technical parameters complement the upward movement very well, showing inherent strength in the counter.
“Therefore, we recommend BUYing Ingersoll-Rand around ₹3,250-3,230, maintaining a stop loss of ₹3,090 for positional purpose of ₹3,500–3,530,” Osho said.
Also read: World markets today: Nasdaq down more than 1% as Alphabet, Microsoft anticipate rising AI costs; Fed decision awaited
Disclaimer: The above views and recommendations are those of individual analysts, experts and trading companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 01 Feb 2024, 05:52 IST