Budget week ahead: Will NIFTY hold its ground?

StockEdge's Morning Market Analysis - 29th Jan, 2025

The Nifty gained 128 points to close at 23957, opening higher and staying firm until mid-session. In the second half, selling pressure emerged, erasing intraday gains. The India Vix is at 18+ levels, indicating increased volatility. The banking sector outperformed due to the RBI's liquidity easing, boosting market health, while most other sectors ended in red. Real Estate and Auto saw minor gains, and FIIs continued their selling spree with sales close to 4900 Crores yesterday.

The bulls have managed to protect 22800 in the last two sessions, but there are no clear bullish signs yet. The indicators are oversold. Until Saturday’s Budget session, we expect the index to remain between 22800 and 23350. 23140, with 23350. 23140 as the first resistance. A close below 22800 gives the bears more control. Expect higher volatility in the next two days due to the monthly expiry and sector adjustments for the Budget session.

To conclude – 22800 remains crucial. On the upside, the bulls need to cross and close above the resistance levels to show up some genuine strength.

Nifty

Support: 22800, 22500

Resistance: 23140, 23250

Bank Nifty

Support: 48500, 48000

Resistance: 49000, 49350

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