Market Recap Post-Budget 2024: Nifty and Bank Nifty Recover After Initial Declines
After heavy selling in the first half of the trading day, the Nifty managed a recovery, closing at 24,479, down 30 points. Bank Nifty ended at 51,778, down 502 points, after failing to hold above the 52,500 level and continuing to decline before a modest recovery in the second half. The India VIX saw a sharp intraday drop of 17.43%, closing at 12.75, providing some comfort to the bulls amid the Budget 2024-25 presentation. Sectoral performance was mixed, with buying observed in FMCG, Pharma, and Consumer Durables.
Rajesh Bhosale, Equity Technical Analyst at Angel One, commented, "On the key Budget day, the Benchmark Index started positively. However, as the day progressed, prices traded cautiously within a range influenced by the Budget announcement. In the second half, volatility spiked, causing prices to drop sharply below 24,100. Despite this, prices quickly rebounded, reclaiming lost ground and ending just below 24,500 with a marginal loss of 0.14%. It was an intriguing trading session. Key events like the Budget often set the tone for future trends, but today, the closing did not show significant changes. The impact of such events can sometimes be seen in the following sessions, making the next few days crucial."
"Observing the daily chart, the market shows a defined range. The upper end, marked by a bearish engulfing pattern formed on Friday at 24,850, serves as key resistance, followed by the psychological level of 25,000. On the downside, the panic low around the 20EMA at 24,100 - 24,000 acts as a strong support zone. In our previous outlook, we highlighted the fresh sell signal by the RSI Smoothened in the overbought zone, which remains a key observation for our firm cautious stance. However, recent observations indicate that the bulls are very resilient and hard to give up. We expect the Index to hover within the 24,000 - 25,000 range and anticipate trending moves after some consolidation. In this scenario, it is advisable to consider entering long positions near the lower end of the range and booking profits at the mentioned resistance levels," he further added.
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