Will markets see another round of post-Budget bear attack tomorrow? Check levels where buying could happen

Stock market today news: Sensex, Nifty see profit booking in trade. 

• Investors lost Rs 11 lakh crore as markets fell sharply on the Budget Day.
• Sensex and Nifty dropped nearly 2 percent, reversing early gains.
• Key support and resistance levels suggest further volatility ahead.

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Investors’ wealth eroded by about Rs 11 lakh crore on February 1 as domestic equity markets witnessed a sharp sell-off after the Union Budget, with benchmark indices tumbling nearly 2 percent following the proposed hike in Securities Transaction Tax (STT) on derivatives.

Reversing early gains, the Sensex declined as much as 2,370.36 points, or 2.88 percent to slip below the 80,000 level at 79,899.42 during intra-day trade. It later settled at 80,722.94, down 1,546.84 points, or 1.88 percent. The Nifty fell 495.20 points, or 1.96 percent, to close at 24,825.45. During the session, it tumbled 748.90 points, or 2.95 percent, to a low of 24,571.75.

Key levels to watch

Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities, said the zone of 24,700–24,650 is expected to act as immediate support for the Nifty. A sustained move below 24,650 could accelerate downside momentum and lead to a further correction towards 24,500, followed by 24,350 in the short term. On the upside, the 24,950–25,000 range is likely to remain an immediate hurdle, he added.

Commenting on the banking index, Shah said Bank Nifty also came under significant pressure on Budget Day, slipping below its 20-day and 50-day exponential moving averages, indicating a weakening short-term trend. The index dropped to an intra-day low of 57,783 before recovering marginally. He noted that the 57,800–57,700 zone is expected to offer immediate support, while a sustained move below 57,700 may lead to further correction towards 57,200 and then 56,500. On the upside, the 59,000–59,100 zone is seen as a key resistance area.

Shrikant Chouhan, Head of Equity Research at Kotak Securities, said benchmark indices witnessed a highly volatile session, with the Nifty ending 495 points lower and the Sensex down by 1,546 points. Most sectoral indices closed in the red, with capital market, defence and PSU bank stocks declining over 5 per cent.

Chouhan said that despite a sharp dip in the second half, the market recovered some losses from the day’s lows. On the daily charts, the indices have formed a long bearish candle and are trading below the 200-day simple moving average, which is negative from a technical perspective. He said volatility is likely to persist in the near term and advised level-based trading.

According to him, the 25,000 level on the Nifty and 81,300 on the Sensex will act as crucial resistance zones. As long as the market trades below these levels, weak sentiment may continue. On the downside, further correction could extend towards 24,650–24,600 on the Nifty and 80,100–79,900 on the Sensex, with deeper cuts possible up to 24,500–24,300 and 79,600–79,000, respectively.

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