Mumbai, Jan 31,2024: A positive build-up was reflected in Indian markets prior to the Interim Budget (Feb 1) on Wednesday and although expectations are low, the market anticipates a lower fiscal deficit supported by buoyant tax revenues, said Vinod Nair, Head of Research at Geojit Financial Services.
At close on Wednesday, Sensex was up 612.21 points or 0.86 per cent at 71,752.11, while Nifty was up 203.60 points or 0.95 per cent at 21,725.70.
The overall trend in the market is akin to a seesaw, and the buy-on-dips strategy is effective as of now, Nair said.
The pharma sector stood out with a positive earnings outlook. Global market cues are mixed ahead of the FOMC meeting, and US 10-year yields are marginally down. An immediate rate cut seems improbable, but indications about the future trajectory could ease volatility, he said.
Rupak De, Senior Technical Analyst at LKP Securities, said the Nifty has formed a Piercing Line pattern on the daily chart, following a dark cloud cover in the preceding trading session.
This consecutive complete reversal pattern indicates a highly-volatile market sentiment. The trend may continue to be volatile on Thursday, especially as the Interim Budget will be delivered. Support on the lower end is situated at 21,500, while a decisive move above 21,750 might trigger a rally towards 22,100 and beyond.