Although Nifty maintained a positive momentum from the beginning of last week and remained optimistic until Friday, it faced heavy selling pressure following the Finance Minister’s budget presentation on Sunday. The index plunged from last week’s high of 25,450 to hit a low of 24,571 immediately after the announcement, eventually closing at 24,825.
The Finance Minister presented a thoroughly mature budget that prioritizes the country’s long-term financial stability and growth. The allocation of a record ₹12.2 Lakh Crore for ‘Capex’ will provide a significant stimulus to the infrastructure and manufacturing sectors, creating employment opportunities. Simultaneously, reducing the Fiscal Deficit to 4.3% demonstrates fiscal discipline—a strategic move that will help control interest rates and attract foreign investment.
The hike in STT on option trades is a minor setback for traders and may significantly impact the short-term trend. However, given the strengthening economy, long-term investors in Technology, Defence, Health, and Infrastructure stocks stand to benefit. In essence, this budget lays a strong foundation for ‘Viksit Bharat’ by reducing imports and boosting domestic production.
Technical Outlook Let us examine the key support levels to watch in Nifty for the coming days. The immediate support range lies between 24,732 – 24,587. If this level cannot be sustained, the focus should shift to the supports at 24,404 – 24,200; as mentioned previously, this is a highly critical support zone.
Looking at the upside possibilities: providing the aforementioned supports hold, the resistance zones of 25,160 – 25,460 will be the critical hurdles for the bulls. Breaking through and closing above this range is vital to overcoming the current crisis phase. This zone remains the deciding factor in determining whether the bulls can successfully stage a comeback.