Sensex and Nifty Today: Market Remains Cautious Ahead of Key Events
Flat Trading in Equity Benchmarks Amidst Anticipation
On the morning of January 31, equity benchmarks the Sensex and the Nifty exhibited flat trading patterns. Investors are trading cautiously in anticipation of two major forthcoming events: the 2024 budget and the US Federal Reserve’s rate meeting. This caution reflects the swings between gains and losses experienced in the last five sessions. Consequently, the fear gauge, India VIX, is hovering around 16, indicating heightened market volatility.
As of 9.35 am, the Sensex stood flat at 71,212, while the Nifty traded marginally higher, just above 21,550.
Expert Views: A Bearish Outlook
Market experts are maintaining a bearish stance, advising investors to refrain from taking aggressive long positions before these significant events. According to Sameet Chavan, Head of Research at Angel One, the Nifty’s sustained trade beyond the 21,750-21,800 mark could shift momentum in favor of bulls. However, he believes that any movement towards these levels will likely face selling pressure ahead of the budget announcement.
Upcoming Budget and Market Expectations
Finance Minister Nirmala Sitharaman is set to present the interim budget for 2024-25 on February 1. The market is leaning towards expectations of a budget favoring fiscal consolidation, with moderate capital expenditure announcements.
Read More: Sensex & Nifty Climb 1%: Analysts Anticipate Volatility Amid Budget
Broader Markets Outperform Benchmarks
In the broader market, the Nifty Midcap 100 and Nifty Smallcap 100 indices are outperforming the benchmark, with rises of up to 1 percent.
Sectoral Performance: Mixed Trends
On the sectoral front, PSU Bank and Media indices experienced mild profit-booking, declining up to 0.7 percent. In contrast, the Nifty Auto index emerged as the top performer, gaining over 1 percent, driven by companies like Tata Motors, M&M, Eicher Motors, and Maruti Suzuki.
Market Strategists’ Take on Today’s Trade
Anand James, Chief Market Strategist at Geojit Financial Services, anticipates some weakness in the morning trade but expects bulls to regroup around the 21,481 region. He notes that a slip below 21,481 could expose levels down to 21,200-20,900, although such a steep decline is less expected today.
Global Markets and Federal Reserve Outlook
Internationally, US markets traded mixed overnight, with investors focusing on the Federal Reserve’s monetary policy stance. The tech-heavy NASDAQ and S&P 500 indices saw losses, while the Dow Jones added 0.3 percent. According to the CME Fedwatch tool, expectations for a March rate cut by the Fed have decreased, while the likelihood of no rate cut has increased.
In Asia-Pacific, most markets edged lower this morning as investors assessed economic data from China and Australia, among other regions.
Disclaimer: Investment opinions and tips on Stockmarkets.co.in are solely those of the individual experts and do not reflect the stance of the website or its management. For investment decisions, Stockmarkets.co.in recommends consulting with qualified professionals.
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