The Indian equity benchmarks had a roller coaster special session on budget day, but ended the day in red. Analysts expect short-term volatiliy to persist in the indices.
"On daily charts, it has formed a long bearish candle, and it is currently trading below the 200-day SMA (Simple Moving Average), which is largely negative," said Shrikant Chouhan, head of equity research at Kotak Securities.
Chouhan added that the brokerage expects volatility continue in the near future and, therefore, advises that level-based trading would be the ideal strategy for day traders.
"We are of the view that the short-term market texture is volatile, and volatility is likely to continue in the near future. Hence, level-based trading would be the ideal strategy for day traders," he said.
The immediate support zones are 24,650-24,600, while the key support lies at 24,500-24,300. On the higher side, 25,000 will act as key resistance, and a successful breakout will lift it to 25,200.
The Nifty Bank index also slumped nearly 3% to close in the red, dragged down by PSU banks.
Market Recap
The Indian equities ended a volatile session in the red, extending its decline for the second session. Nifty was trading below the 24,600 levels but closed above 24,800. Intraday, both Nifty and Sensex fell nearly 3%.
The Nifty ended 495.20 points or 1.96% lower at 24,825.45, posting its worst Budget day since 2020. The Sensex ended 1,546.84 points or 0.36% lower at 80,722.94, posting its worst Budget day since 2020.
Broader indices ended in the negative. Nifty Midcap 150 ended 2.09% lower and Nifty Smallcap 250 closed 2.17% lower.
Most sectoral indices rose, with the Nifty PSU Bank and Nifty India Defence leading the decline, while Nifty IT was the only sector in the green.
The market breadth was skewed in the favour of sellers, as 2,376 stocks declined, 1,760 advanced and 180 remained unchanged on the BSE.
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