Nifty 50, Sensex today: What to expect from Indian stock market in trade on February 1 ahead of Budget 2025 | Stock Market News

The Indian stock market benchmark indices — Sensex and Nifty 50 — are likely to face volatility on Saturday amid the announcement of the Union Budget 2025-2026 in Parliament today. Finance Minister Nirmala Sitharaman is set to present her eighth consecutive Budget today.

The trends on Gift Nifty indicate a weak start for the Indian benchmark index. The Gift Nifty was trading around 23,533, a discount of nearly 87 points from the Nifty futures’ previous close.

The Indian stock and commodity markets are open today as the BSE, NSE and MCX have announced a special trading session on Budget day.

On Friday, the domestic equity market indices ended with substantial gains, with the Nifty 50 closing above the 23,500 level.

The Sensex surged 740.76 points, or 0.97%, to close at 77,500.57, while the Nifty 50 settled 258.90 points, or 1.11%, higher at 23,508.40.

The Nifty 50 formed a long bull candle on the daily chart, surpassing the hurdle of 23,400 levels and closing higher.

“Technically, this market action indicates significant change in trend and signals emergence of strong upside momentum. The bearish pattern of lower top and bottoms of the last one month seems to have reversed, as Nifty 50 closed above the recent lower top of 21st January at 23,426 levels. This is a bullish development and eventually we could see formation of bullish higher tops and bottoms,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

According to him, the underlying trend of Nifty 50 remains strong, and having surpassed the hurdle of 23,500 levels, bulls could advance towards another resistance of 23,800 levels in a short period of time, while immediate support is at 23,400 levels.

Here’s what to expect from Nifty 50 and Bank Nifty today:

Nifty OI Data

Nifty derivative data reflects a mildly bearish undertone, with call writers maintaining a slight upper hand over put writers. This hints at cautious sentiment near higher levels.

“The 24,000-call strike has seen open interest surge to 77.38 lakh contracts, establishing it as a key resistance zone. Meanwhile, substantial put writing at the 23,000 strike, with 60.63 lakh contracts, confirms it as a strong support area. Notably, increasing put additions between 23,000 to 23,500 further solidify the base, while call unwinding at higher strikes suggests a shift in bullish positioning,” said Dhupesh Dhameja, Derivatives Analyst, SAMCO Securities.

The Put-Call Ratio (PCR) climbed to 1.01 from 0.88, indicating improving bullish sentiment. Furthermore, the ‘max pain’ level at 23,500 suggests limited downside potential, though volatility remains a factor to watch, he added.

Nifty 50 Prediction

Nifty 50 continued the upside momentum for the fourth consecutive session on January 31, and witnessed a sharp up move of around 258 points.

“Nifty 50 index formed a bullish candle with a large body on the daily chart, reflecting strong upward momentum going ahead. The daily RSI has moved above the average line of 50, reinforcing a sustained uptrend and signalling improving market breadth. Nifty 50 has closed higher for the fourth consecutive session, yet on a broader scale, it has marked its fourth consecutive monthly decline, a rare occurrence in historical trends,” said Om Mehra, Technical Analyst, SAMCO Securities.

With the Union Budget set to be announced today, heightened volatility is expected, potentially leading to sharp swings on both sides. The support for Nifty 50 is placed around 23,200, while key resistance levels are set at 24,000 and 24,200, he added.

VLA Ambala, Co-Founder of Stock Market Today, noted that on the weekly time frame, Nifty 50 formed a bullish Marubozu candlestick pattern at a key support trendline, suggesting a potential upward movement.

“Meanwhile, on the monthly chart, the index formed a high wave doji candlestick pattern. On the other hand, the India VIX dropped by 5% and traded at 16.36 during Friday’s session. According to the market analysis, I advise traders to keep their short portfolio hedged and consider pullback trading opportunities to capitalize on the emerging trend. Amid these developments, Nifty can find support levels between 23,380 and 23,150 and face resistance near 23,650 and 23,800 in the next session,” Ambala said.

Bank Nifty Prediction

Bank Nifty index gained 0.56% to conclude the Friday’s session at 49,587.20, forming a bullish candle on the daily chart, reflecting sustained upward momentum.

“Bank Nifty breached the previous resistance level of 49,650 intra-day, making the resistance zone fragile. A decisive move above the psychological 50,000 mark would further amplify the bullish momentum. The index is gaining strength following the formation of a double-bottom pattern. Nifty Bank is inching closer to the 20-day moving average (20 DMA), while the daily Relative Strength Index (RSI) hovers near the 50 level, indicating balanced momentum with a minor tilt towards the upside,” said Om Mehra.

The immediate support level remains at 48,500, while the resistance is placed at 51,000, followed by 51,500. The trading range remains wider than usual due to heightened volatility expectations ahead of the Union Budget announcement, he added.

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