Market Wrap

Indian equities notched up their third straight day of gains, with the Nifty closing comfortably above the 25,400 mark, up ~0.30%. Early dips toward the 200-day SMA once again witnessed steady buying interest, signalling improving short-term sentiment and a “buy-on-dips” approach from market participants.

Sectoral action remained constructive. The CPSE basket continued to see consistent accumulation for the third consecutive session, with the weekly chart confirming a breakout from a prolonged consolidation range — a technically positive signal ahead of the Union Budget. Metal stocks stayed in focus, tracking firmness in global commodity prices.

Meanwhile, gold and silver surged to record highs, reflecting a parallel risk-hedging trend amid persistent global uncertainties.

Global cues offered little clarity. Asian and European markets traded mixed as investors remained cautious ahead of key macro triggers.

On the domestic front, optimism following the Economic Survey continued to support sentiment, reinforcing expectations of growth-oriented policy signals in the upcoming Budget.

However, with the Nifty approaching the 25,500 resistance zone, the market appears to be entering a more sensitive price area where upside momentum could face near-term supply.

What's Ahead

With just one trading session left before the Union Budget on 1 February, markets are likely to witness heightened volatility and cautious positioning. The Nifty is approaching a critical resistance zone near 25,500, and any move toward the 25,700–25,800 band could see profit-booking emerge as traders avoid carrying aggressive bets into a major event risk. Sentiment remains supported by optimism around growth-focused policy signals, but the market is now trading in a technically sensitive zone where reactions to news flow can be sharper.

Investors will keep a close watch on Budget expectations, movements in global commodities, bond yields, and overnight global cues, all of which could influence near-term direction. While strong support is placed around 24,150–24,200, the focus in the immediate term will be on how the index behaves near resistance, as positioning may turn more defensive ahead of the policy announcement.

Market Snapshots

Sectoral Performance

Technical Outlook

Nifty 50

The Nifty extended its gains for the third consecutive session, closing at 25,418.90 after witnessing buying interest near the lower levels and sustaining strength through the day. Momentum is gradually improving, with the RSI inching toward the 50 mark, indicating stabilising price action after recent volatility. Strength in metals and select financial heavyweights provided the necessary push, while market breadth remained evenly balanced. Technically, the index is approaching a sensitive resistance area, with immediate hurdles placed at 25,713 and 25,890, while near-term supports are seen at 25,140 and 24,963. Sustaining above the 25,140 zone keeps the short-term bias constructive, but a decisive move above resistance is needed for further upside traction.

Bank Nifty

The Bank Nifty closed near the day’s high at 59,957.85, reflecting steady intraday accumulation across private and select PSU banks. The RSI is trending toward the 60 zone, signalling strengthening momentum and an improving near-term technical structure. Despite weakness in a few PSU names, broader participation remained positive, helping the index hold gains. Immediate support is placed at 59,459 and 59,150, while resistance levels are seen at 60,457 and 60,765. A sustained move above the 60,000 mark could open the door for a fresh leg of upside, while dips toward support may continue to attract buying interest.

Nifty Financial Services

The Nifty Financial Services index witnessed firm buying interest and closed at 27,509.60, supported by strength in banking and NBFC counters. Positive market breadth and leadership from key constituents indicate improving sentiment within the financial space. Technically, the structure remains constructive as long as the index holds above the support band of 27,223 and 27,047. On the upside, resistance is placed at 27,791 and 27,967, where supply may emerge. The index appears poised for gradual upward movement, backed by strengthening momentum in frontline financial stocks.

Sensex

The Sensex closed at 82,566.37 with modest gains, led by metals and select financial heavyweights, although broader market breadth remained slightly negative. The index continues to trade in a higher range, reflecting resilience despite stock-specific declines. Immediate support is seen at 81,839 and 81,376, while resistance levels are placed at 83,335 and 83,798. Holding above support keeps the broader trend intact, but a decisive breakout above resistance will be required to signal stronger upside continuation.