Sensex and Nifty Record Gains in Morning Trade:
On the morning of January 29, benchmark Indian indices, the BSE Sensex and NSE Nifty 50, both recorded over a 1 percent increase. This rise was largely influenced by a positive trend in Asian markets. Despite this uptick, analysts predict continued market volatility. This anticipation is due to the upcoming interim budget and the US Federal Reserve’s decision on interest rates.
As of 10:50 am, the Sensex had climbed 1.1 percent to reach 71,497, while the Nifty 50 experienced a similar 1.1 percent rise, hitting 21,603.
Market Outlook: Expert Analysis and Predictions:
Market experts advise investors to keep a close eye on the Nifty, particularly around the psychological level of 21,000. Sameet Chavan, a technical analyst at Angel One, highlights this week as critical due to the budget announcement. He notes, “The Budget week is known for volatility, and considering the above formation, we lean towards the bearish side.”
Chavan also points out that in case of unexpected negative developments, the Nifty might drop to 20,800 and possibly to 20,500. He anticipates resistance at around 21,750.
Investor Focus: Interim Budget and US Federal Reserve Decision:
The upcoming interim budget on February 1 is a key event for investors. Expectations are that the budget may focus on fiscal consolidation, with potential capex measures in railways, infrastructure, and consumption sectors.
Additionally, the US Federal Reserve’s interest rate decision is highly anticipated. Many investors foresee the January meeting as setting the stage for potential rate cuts, with expectations of a reduction in the federal funds target range starting in March.
Performance of Broader Markets and Sectoral Overview:
The broader markets also performed well on the morning of January 29. The Nifty Midcap 100 and Nifty Smallcap 100 indices surged up to 0.8 percent. However, the fear gauge India VIX rose over 10 percent to 15.
Most sectors, except Nifty IT and Realty, experienced gains. Leading these were the Bank Nifty and Oil & Gas sectors, each recording over a percent increase in the morning trades.
Bank Nifty’s Positive Trajectory:
Bank Nifty showcased a gain of over 1 percent, reaching 45,474, with significant contributions from IDFC First Bank, Bandhan Bank, Federal Bank, Kotak Mahindra Bank, and HDFC Bank. HDFC Bank notably surged 2 percent following the RBI’s approval for LIC to increase its stake to 9.99 percent by 2025.
Mandar Bhojane, commenting on future movements, suggests that if the index advances further, key resistance levels could be at 45,450, followed by 45,700 and 46,000.
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