Nifty, Nifty Bank moved higher ahead of Union Budget 2024

NIFTY:

The NIFTY opened at 21487.25 with a gap down of just 41 points. The index moved lower for the first five minutes of trading but soon found support and turned up. Prices recorded its intraday low at 21448.85, moved up sharply, and took the index above 21700. The NIFTY found strong resistance just below 21750 and formed a trading range. That range eventually lasted till the end and the index recorded its intraday high at 21741.35. Prices finally closed at 21725.70 near its intraday high with a gain of 203.60 points or 0.95% up. All the sectoral indices have moved up in line with the NIFTY 50 index and closed higher led by PHARMA and REALTY which ended with over 2% gains followed by AUTO, BANK, and METAL. The short-term trend is sideways now which was down before. It was a tale of two halves in the NIFTY 50 index. In the first half, the index rallied sharply by almost 300 points while in the second half, moved within a narrow range of just 90. The long-term trend is down while the long-term momentum has turned up before reaching the weak zone. Both the momentums have aligned on the upside suggesting higher levels may be ahead.

BANK NIFTY:

The BANK NIFTY opened at 45295.65 without much of a gap. The index initially moved lower for the first five minutes of trading but found support just above 45000 and turned up after recording its intraday low at 45071.20. A Sharp rally came which found resistance just below 46200 and the index started a consolidation process afterwards. That consolidation continued till the end, prices recorded its intraday high at 46179.75 and finally closed at 45974 with a big gain of 955 points. PSU BANKS have outperformed, saw a sharp upside move, and finally ended with a gain of 2.27%. PVT BANKs have also moved up, saw a sharp upside move, and ended with a gain of 1.16%. Within the index, in terms of points, HDFC BANK contributed the highest on the upside followed by SBIN. The short-term trend changes to sideways which was down before. We have been tracking support around 44500 while resistance around 46500. The index has held the support levels, bounced up, and is now heading towards the resistance level.

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UPCOMING ECONOMIC DATA

NEWS UPDATES

• The Sensex and the Nifty erased early morning losses to end higher on January 31 in sync with the indices’ one-day-up and one-day-down pattern of the past five sessions on the budget eve. Market sentiment is running positive ahead of the Interim Budget, the one before the 2024 Lok Sabha elections, analysts said. The Sensex closed 612.21 points or 0.86 percent higher at 71,752, and the Nifty gained 203.60 points or 0.95 percent at 21,726.

• The Central government’s fiscal deficit widened to Rs 9.82 lakh crore in April-December from Rs 9.07 lakh crore in April-November, data released by the Controller General of Accounts on January 31 showed. At Rs 9.82 lakh crore, the fiscal deficit for the first nine months of the current financial year accounts for 55.0 percent of the full-year target of Rs 17.87 lakh crore.

• Maruti Suzuki India Limited’s reported better-than-expected standalone net profit of Rs 3,130 crore in December quarter, up 33 percent from the year -ago period, on a favourable product mix, higher realisation and improved volumes. The company’s Profit After Tax (PAT) during the same quarter last year was Rs 2,351.3 crore. The country’s largest carmaker’s revenue increased 15 percent to Rs 33,309.7 crore from Rs 29,044.3 crore in the year-ago period.

Source: Economic Times,  Indian Express, Business Today, Livemint, Business Standard, Bloomberg Quint

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