The equity benchmark indices were traversing tricky waters on Tuesday but ended in gains after a strong recovery from intraday low levels. Analysts are expecting the heightened volatility to continue ahead of the annual budget announcement slated for Feb 1.
"Nifty has formed a bullish candlestick pattern with a lower shadow, indicating buying demand at lower levels on the monthly expiry session. Volatility is expected to remain high on account of the Union Budget scheduled for February 1, 2026, and volatile global market," said Bajaj Broking Research.
Key resistance levels for the index lie between 25,400 and 25,500, while on the downside, 25,000 and 24,800 will act as the key support. Shrikant Chouhan, head of equity research at Kotak Securities, advised traders to exit their long positions if the Nifty falls below the key support levels.
"Going forward, we expect markets to remain rangebound tracking global developments and geopolitical cues, while domestically, stock-specific movements are likely to be driven by the ongoing Q3 earnings season," stated Siddhartha Khemka, head of research, wealth management, Motilal Oswal Financial Services.
Nifty Bank
The Nifty Bank index will continue its positive bias and is observing buying demands at lower levels, as per analysts.
"The Bank Nifty on the daily chart has formed a bullish candlestick pattern which almost engulfed it's previous session price action, signalling buying demand at lower levels around the 100 days EMA and a lack of follow through to previous sessions sharp decline," said Bajaj Broking Research.
Key support is placed between 58,000 and 57,500 on the upside, while resistance lies at 60,000-60,400 levels in the coming sessions.
Market Recap
The Nifty 50 posted healthy gains of 126.75 points and ended 0.51% higher at 25,175.40. Similarly, Sensex ended the session higher by 319.78 points or 0.39% at 81,857.48.
On the sectoral front, strong buying interest was observed in Nifty Metal, Banking, and Oil & Gas stocks, which led the market's gains, as opposed to, Nifty Media, Auto, and FMCG which witnessed profit booking. The remaining sectors showed mixed performance.
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