Nifty 50, Sensex on Budget 2024 day: What to expect from Indian stock market in trade on February 1

The Indian stock market indices Sensex and Nifty 50 are expected to open on a cautious note Thursday tracking weak global market cues and ahead of the interim budget 2024.

The trends on Gift Nifty indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 21,830 level as compared to the Nifty futures’ previous close of 21,786.

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Global market cues remain subdued after the US Federal Reserve Chair Jerome Powell on Wednesday dashed hopes for an interest rate cut as early as March. The Federal Open Market Committee (FOMC) kept its key interest rate unchanged in its January policy meet.

Read here: ‘Don’t think it’s likely…’ US Fed Chair Jerome Powell on March rate cut: 10 key highlights from FOMC meeting outcome

On Wednesday, the bulls took charge and the benchmark indices witnessed strong upward momentum with the Nifty 50 closing above 21,700 level.

The Sensex jumped 612.21 points, or 0.86%, to close at 71,752.11, while the Nifty 50 settled 203.60 points, or 0.95%, higher at 21,725.70.

Nifty 50 formed a long bull candle on the daily chart that has almost recovered the loss of Tuesday’s session. Though, Nifty declined sharply from near the hurdle of 21,750 – 21,800 levels, the strong buying has emerged from the immediate support of 21,400 levels.

Also Read: Indian stock market on Budget 2024 day: 6 key things that changed for market overnight – Gift Nifty to US Fed policy

“Having moved just above the recent lower top of 21,750 levels on 29th and 30 January, there is a higher probability of negation of previous bearish chart pattern like lower highs and lower lows on the daily chart and that could eventually result in a bullish formation of higher highs and lows. This is a positive indication for the market ahead,” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.

He believes the short-term trend of Nifty 50 remains up and the market is waiting for the triggers from the key economic event of Union Budget 2024 today. High volatility is likely on Thursday and one may expect chances of decisive upside breakout of 21,800 levels soon.

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Here’s what to expect from Nifty 50 and Bank Nifty today:

Nifty 50 Prediction

Nifty 50 ended Wednesday’s volatile session on a positive note with nearly 1% gain ahead of the budget and US Federal Reserve’s interest rate decision.

“The Nifty has formed a Piercing Line pattern on the daily chart, following a dark cloud cover in the preceding trading session. This consecutive complete reversal pattern indicates a highly volatile market sentiment. The trend may continue to be volatile on Thursday, especially as the interim budget will be delivered,” said Rupak De, Senior Technical Analyst, LKP Securities.

According to him, support on the lower end is situated at 21,500, while a decisive move above 21,750 might trigger a rally towards 22,100 and beyond.

Also Read: Buy or sell on Budget 2024 date: Vaishali Parekh recommends three stocks to buy today — February 1

Bank Nifty Prediction

The Bank Nifty bulls made a robust comeback on January 31, a day before the budget, surpassing the immediate hurdle at 45,500.

“The index now faces the next resistance at 46,500, and a decisive break above this level could potentially reverse the entire trend for the index. On the downside, the immediate lower-end support is positioned at 45,700, and breaching this level may signal a resurgence of bearish control in the market,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

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