The Indian equity market is expected to remain volatile in run-up to the Union Budget on Sunday, analysts said on Thursday, after the frontline indices swung between red and green to finally settle with gains.
"The index extended gains for a third consecutive session, forming a bullish candle with a higher high—signalling a continuation of the rebound from deeply oversold levels. Volatility is likely to stay elevated in the run-up to the Union Budget on February 1, 2026," said Bajaj Broking Research.
On the higher side, 25,500 would be the immediate resistance for the bulls, according to Shrikant Chouhan, head equity of research at Kotak Securities. On the downside, immediate support lies at 25,150, while a stronger support base is placed around 25,000–24,900.
"Going forward, the index may enter a consolidation phase within the 25,000–25,550 level, with stock-specific action driving market moves," stated Bajaj Broking Research.
Nifty Bank
Analysts' forecast is more or less similar for the Nifty Bank index, which extended gains into the third session as well.
"Bank Nifty extended its upward move for the third consecutive session, forming a bullish candle with a higher high and higher low, indicating continuation of the positive bias," Bajaj Broking Research said, adding that volatility is expected to continue till at least Feb 1.
On the downside, immediate support is seen near 59,000, while immediate resistance for the index lies at 60,400.
Market Recap
India's benchmark equity indices settled higher on Thursday, tracking gains in Asia. Larsen & Toubro contributed most to the Nifty's gain after solid third quarter results, strong order wins and healthy margins.
Nifty ended above the 25,400 mark with gains of over 0.3% and the benchmark index outperformed the broader markets. Sensex closed 221.69 points or 0.27% higher at 82,566.37
In the broader market, the Nifty Midcap and Small-cap indices also ended slightly higher, up 0.18% and 0.20%, respectively.
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