The Indian equity markets witnessed a downward trend during Friday's trading session, with metal sector stocks emerging as the primary laggards. This decline occurred amidst a cautious investor atmosphere, influenced by several macroeconomic factors and the imminent presentation of the Union Budget.
Market Performance and Key Drivers
The benchmark indices closed in negative territory. The Nifty 50 index declined by 0.28 percent, settling at 25,352.85 points. Similarly, the S&P BSE Sensex fell by 0.23 percent, ending the session at 82,373.01 points as of 14:13 Indian Standard Time. This bearish sentiment was primarily fueled by a combination of a weakening Indian rupee, persistent foreign portfolio investor outflows, and escalating global crude oil prices. These elements collectively made market participants apprehensive as they anticipate policy directions from the federal budget scheduled for Sunday, February 1, 2026.
Metal Sector Under Pressure
The metal index experienced a significant correction, dropping approximately 4 percent. This pullback follows a substantial rally where the sector had gained around 8.5 percent over the preceding three trading sessions. The decline was largely attributed to a retreat in prices of gold and other base metals in international markets, which had recently seen an uptick. This sectoral volatility highlights the sensitivity of commodity-linked stocks to global price movements.
Union Budget in Focus
All attention is now firmly fixed on the Union Budget, to be presented by Finance Minister Nirmala Sitharaman. Investors are keenly awaiting announcements that could stimulate economic expansion and enhance corporate profitability. The government's advance estimate projecting GDP growth between 6.8 percent and 7.2 percent for the fiscal year 2026-27 has already infused a degree of optimism regarding the domestic economic trajectory. A special trading session has been scheduled for Sunday to coincide with the budget presentation, operating from 9:15 AM to 3:30 PM IST.
Technical Perspective on Key Indices
From a technical standpoint, market analysts are monitoring crucial levels. For the Nifty 50, the index continues to trade above its 200-day moving average, situated near 25,184, and remains well above the psychologically important 25,000 mark, suggesting underlying market strength. However, analysts note that immediate support is seen at 25,151. A decisive break below this level could potentially intensify selling pressure, with targets extending toward 25,000 and further down to 24,500. On the upside, the all-time high of 26,373.20 remains a formidable barrier, with intraday resistance observed near the 25,503 level.
For the Bank Nifty, a key support zone is identified around 59,201. A sustained fall below this threshold might accelerate declines toward 58,121 and subsequently 57,157. The overall technical structure indicates that while the broader trend retains resilience, the market is in a wait-and-watch mode ahead of the budget announcements.
Stocks in the Spotlight
Analysts have highlighted specific stocks for near-term focus based on their technical setups:
Bharti Airtel
The telecom giant is currently in a consolidation phase, with its price action oscillating around short- and medium-term moving averages, signaling near-term indecision. Momentum indicators like the Relative Strength Index (RSI) linger below the neutral zone, pointing to mild weakness. Immediate support is clustered in the ₹1,870 to ₹1,900 range. A breach below this zone could extend declines toward ₹1,855–₹1,850. Upside movement appears capped near ₹2,000, with stronger resistance anticipated around ₹2,040. A sustained breakout above ₹2,050 is viewed as necessary to reignite bullish momentum.
Larsen & Toubro (L&T)
L&T is trading within a consolidation range following a recent upward move. The stock holds above key medium-term averages, indicating the broader uptrend remains intact. The RSI is near neutral, reflecting a pause. Immediate support lies around ₹3,860–₹3,880, with a more substantial base near ₹3,800, which is expected to attract buying interest on dips. Resistance is seen in the ₹3,980–₹4,000 band. A conclusive breakout above this zone could potentially initiate a fresh rally toward ₹4,050 and beyond. The technical perspective suggests a buy-on-dips strategy as long as the stock sustains above its key support levels.
Bajaj Housing Finance
This stock appears to be forming a potential base after a period of consolidation. Key support is established around the ₹82–85 region, creating a demand zone. A decisive move above the ₹98–100 range could trigger renewed bullish momentum, with subsequent resistance targets near ₹122–124. The broader technical picture suggests a constructive shift as the stock stabilizes, with holding above immediate supports potentially paving the way for an upward move.
Disclaimer: The views and investment recommendations mentioned herein are provided by individual analysts or brokerage firms. They do not represent the opinion of Mint. Investors are strongly advised to consult with certified financial experts before making any investment decisions.
