Budget Announcement at 11 AM. Levels to Watch For in NIFTY Today - Pre-Market Analysis Report

What Happened Yesterday?

NIFTY started yesterday at 24,450 with a gap-down and fell. The market bottomed out in the first 5 minutes and started moving back up. There was consolidation towards the second half. NIFTY ended the day at 24,509, down by 21 points or 0.09%.

U.S. markets closed in the green. European markets closed in green.

What to Expect Today?

Asian markets are trading mostly in the green.

The U.S. Futures are trading flat.

GIFT NIFTY is trading in small green at 24,537, up by 20 points.

All the factors combined indicate a flat opening in the market.

NIFTY has supports at 24,480, 24,300, 24,220 and 24,170. We can expect resistances at 24,500, 24,650 and 24,800.

BANKNIFTY has supports at 52,200, 52,000 and 51,700. We can expect resistances at 52,420, 52,630 and 52,800.

In Nifty, the highest call OI is at 25,500 call strikes, with 24,500 put strike having high open interest. PCR is at 0.89, bearish.

For Bank Nifty, the maximum call OI is at 52,500 and 53,000. The maximum put open interest is at 50,000. PCR is at 0.58, bearish.

Foreign Institutional Investors net-bought shares worth Rs 3,444 crores. Domestic Institutional Investors net-sold shares worth Rs -1,652 crores.

INDIA VIX increased to 15.43.

The market opened with a big gap-down as expected yesterday. But the bulls did not let it go further down, ahead of the budget. The Economic Survey showed excellent growth projections for GDP numbers. So after all the volatility, major indices closed flat.

It is the Union Budget day today, and all eyes in the market are looking at Nirmala Sitharaman at 11 AM. As always, the budget day brings a lot of volatility along with it.

Rumours say that tax cuts for salaried individuals and increases for Long Term Capital Gains are expected. This will impact the general market.

But market players are also looking out for sectoral plays, based on different budget allocations.

The best way to look at today would be to watch for price action moves after the budget speech ends. Anything before that would be pure speculation.

Keeping track of the budget day, but not taking a trade is also an option. And that sounds like a good option to me!

NIFTY should keep above the 24,150 support zone for this current rally to continue. 24,650 can be looked at on the upper side!

We are not running our NIFTY and BANKNIFTY trades for the budget week. You can check out the marketfeed app or our website for new trades on Thursday!

All the best for the day!