Domestic markets are expected to open weak on the special day of trading. Gift Nifty ruling at 23,520 indicates a gap-down opening of about 100 points for Nifty.
The special session indicates that the market will remain volatile as expectation on the Budget have been on the rise from every segment of the economy.
Osho Krishnan, Sr. Analyst, Technical & Derivatives of - Angel One, said: “As we approach the upcoming Budget session and consider the anticipated trade tariffs from the US government, it’s important to acknowledge the current market uncertainty. We expect to gain clearer insights once these events unfold, likely by next week. In the meantime, it’s beneficial to adopt a flexible approach and focus on strategic opportunities rather than making aggressive bets during the special trading session of the Union Budget.”
Meanwhile, F&O data still gives a cautious outlook.
Derivative data reflects a mildly bearish undertone, with call writers maintaining a slight upper hand over put writers, hinting at cautious sentiment near higher levels, said Dhupesh Dhameja, Derivatives Analyst, SAMCO Securities. 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., he said analysing F&O data.
“ 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. 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 further said.
India VIX, the market’s fear gauge, declined 6.57 per cent to 16.24, reflecting easing volatility. “However, as VIX remains above 15, market uncertainty persists, urging traders to remain cautious despite the positive trend,” he cautioned.
Meanwhile, cues from US market is negative as all the major indices ended in the red.