Mumbai (Maharashtra) [India], January 29 : The Indian stock market closed Wednesday's trading session on a positive note with benchmark indices rallying ahead of the monthly expiry and the upcoming Union Budget session. The stock market had seen a positive movement on Tuesday also.
The Sensex jumped 631.55 points to close at 76,532.96, while the Nifty surged 205.85 points, settling at 23,163.10. Among Nifty 50 companies, 42 stocks advanced, while nine declined. The top gainers included Shriram Finance, Bharat Electronics Limited (BEL), Tata Motors, SBI Life, and Trent while the top losers were ITC Hotels, Maruti Suzuki, Asian Paints, Bharti Airtel, and Britannia.
Commenting on the market trends, VLA Ambala, Co-Founder of Stock Market Today, said that investors are increasingly focusing on stock-specific movements ahead of the budget.
She noted that value buying is being explored in the current dip, as market sentiment remains influenced by high expectations.
Ambala, said, "With the budget session around the corner and high expectations in the air, stock-specific movements are gaining momentum as smart investors explore value buying in the current dip. On the other hand, tomorrow marks the monthly expiry of all major indices, which could lead to a wide yet volatile trading range. In this situation, the market participants should adopt neutral strategies to manage volatility."
On the technical front, Ambala highlighted that the Relative Strength Index (RSI) of Nifty has cooled off to 60 on the monthly timeframe, indicating a possibility of further correction in the coming weeks.
"Additionally, the market can experience a pullback movement before the budget announcement, so investors should plan their strategy accordingly. On technical charts, the RSI of Nifty has cooled off to 60 on the monthly timeframe, indicating the potential for further correction in the coming weeks to test its 20-month EMA, a strong level for investing in index ETFs," she said.
"On the other hand, Nifty formed a doji candlestick pattern during today's session, with its RSI at 42. This development calls for cautious buying at key supports while maintaining a neutral stance. Considering these market conditions, the benchmark index can expect support levels between 23,000 and 22,860, while resistance can be found near 23,260 and 23,380 in the next session,"
Several factors continue to shape market sentiment. Anticipation of budget announcements is keeping traders on edge, with sector-specific expectations influencing stock movements.
The upcoming derivative expiry is also expected to contribute to short-term volatility. With technical indicators suggesting a potential correction, experts recommend a cautious yet strategic approach to trading in the coming days.
As the market navigates these key developments, investors remain focused on upcoming economic cues to refine their investment strategies and capitalize on market movements.
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