Tracking the positive Asian markets, the domestic benchmark indices, the Sensex and the Nifty 50, commenced the Budget session on a positive note. The Nikkei 225 gained 1.5 per cent to close at 28,091 and Hang Seng index surged 2.15 per cent to finish at 28,892 levels on Monday. Both the Sensex and the Nifty 50 continued to trend upwards amid minor choppiness in the initial hours and started to test the key resistance at 47,000 and 14,000 levels, respectively.

The Finance Minister’s Budget announcementsto boost infrastructure and agriculture sectors, and key reform proposals in the financial sector, including disinvestment and raising foreign direct investment (FDI) cap to 74 per cent in the insurance, kept the market sentiment positive.

Indices jump

After Budget announcements, the bellwether indices accelerated the up-move on the back of buying interest seen largely in banking, financial services, realty metal and auto sectors. Both Nifty Pvt Bank and Nifty PSU Bank indices jumped 8 per cent and 7.8 per cent, respectively, pushing the Bank Nifty higher by 8.3 per cent.

The defensive sectors, Nifty FMCG and IT, rallied 1.7 per cent and 1.1 per cent . Nifty Pharma is the only index that closed the session in the negative territory, declining 0.55 per cent. Buying interest, coupled with short-covering, kept the market sentiment upbeat, helping the Sensex surpass 48,000-mark and Nifty 50 cross 14,200 levels.

Snapping six-day decline, the Sensex closed 2,314 points, or 5 per cent, higher at 48,600.6 and Nifty 50 jumped 646 points, or 4.7 per cent, to finish at 14,281.2 . However, the key indices face a hurdle ahead at 49,000 for Sensex and 14,500 for Nifty 50 which need a close watch. A clear break above these levels can take Sensex and the Nifty 50 upwards to 50,000 and 14,750, respectively. Conversely, 48,000 and 14,000 will act as key supports for the indices.

Stock movements

The stock of IndusInd Bank (₹971.1) skyrocketed 14.7 per cent, after taking support at ₹800 last Thursday. Nevertheless, the stock now tests a key resistance at ₹970 and it has a significant long-term resistance in the band between ₹970 and ₹1,000. A strong break above this barrier can push the stock higher to ₹1,050 and then to ₹1,100 levels. Next key hurdle is at ₹1,200 levels. On the other hand, key supports are ₹900 and ₹800 levels. A decisive fall below the second base level can drag the stock down to ₹740 and then to ₹700 levels.

On the back of the Budget boost to infrastructure projects, the stock of NCC surged 13.7 per cent on good volumes, breaking above a key resistance at ₹63. The recent rally has underpinned the uptrend that has been in place since March 2020 low of ₹15.9. A further rally beyond the immediate resistance level of ₹70 can push the stock northwards to ₹74 and then to ₹80 over the medium term. Supports to note are at ₹63 and ₹60. But a fall below the base level of ₹60 can start weakening the short-term momentum and drag the stock down to ₹57 and then to ₹50 levels.

On the back of heavy volumes, the stock of KRBL plummeted 14.6 per cent to ₹202.4 , breaking below a key support level of ₹220. This fall has strengthened the downtrend that has been on place since the stock encountered a resistance at ₹320 in August 2020. Both medium as well as short-term trends are down for the stock. Although the stock now tests a key support at ₹200, the short-term outlook is bearish. A fall below this base can pull the stock down to ₹180 which is the subsequent support level to note. Supports thereafter are placed at ₹160 and ₹140 levels. Resistances above ₹220 are at ₹240 and ₹260 levels.

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