The Indian stock market is gearing up for a potentially turbulent session as traders navigate through multiple significant events. With the monthly Futures & Options (F&O) expiry coinciding with the interim budget presentation, market participants are advised to buckle up for increased volatility.
Double Whammy: Expiry and Budget Convergence
This week presents a rare scenario where the monthly F&O expiry aligns with the Union Budget, creating a perfect storm for market movements. The Nifty index is currently trading within a critical range, with immediate support at 21,500 and resistance at 21,750 levels. A decisive break on either side could trigger significant momentum moves.
Banking Sector Shows Strength Amid Uncertainty
The banking sector has emerged as a relative outperformer in recent sessions. The Bank Nifty index has demonstrated resilience, holding above crucial support levels. Market experts suggest that banking stocks, particularly in the private sector, might continue to attract buying interest despite the broader market uncertainty.
IT and Technology Stocks Under Pressure
Meanwhile, the technology sector continues to face headwinds amid global economic concerns. IT heavyweights have been trading with a negative bias, reflecting cautious investor sentiment toward the sector's near-term prospects. The upcoming quarterly results and management commentary will be crucial for determining the sector's direction.
Key Technical Levels to Monitor
Traders should keep a close watch on these critical technical levels:
- Nifty Support: 21,450 - 21,500 levels
- Nifty Resistance: 21,750 - 21,800 zone
- Bank Nifty Support: 45,000 - 45,200 range
- Bank Nifty Resistance: 46,500 - 46,800 territory
Budget Expectations and Market Impact
The interim budget is expected to maintain fiscal discipline while addressing key sectors. Market participants are particularly watching for announcements related to infrastructure spending, rural economy support, and any tax-related measures that could impact specific sectors.
Trading Strategy for Volatile Sessions
Given the expected volatility, traders are advised to:
- Maintain smaller position sizes to manage risk
- Use strict stop-loss orders for all trades
- Focus on sectors showing relative strength
- Avoid aggressive leveraged positions during expiry
The coming sessions promise to be action-packed, with the budget announcements likely to set the tone for market direction in the near term. Traders should remain vigilant and adapt quickly to changing market conditions.
