Indian Stock Markets Rally Ahead of Union Budget Session

The Indian stock markets ended Wednesday on a high, with benchmarks rallying before the monthly expiry and Union Budget session. The Sensex soared 631.55 points, while the Nifty climbed 205.85 points. Experts recommend cautious investment as market momentum indicates possible corrections and sector-specific stock movements influenced by budget expectations.

The Indian stock markets saw a positive close on Wednesday, with benchmark indices surged amid anticipation of the monthly expiry and the forthcoming Union Budget session. Both Sensex and Nifty indices posted significant gains, with the Sensex rising by 631.55 points to settle at 76,532.96, while the Nifty increased by 205.85 points to 23,163.10.

Among the Nifty 50, 42 stocks saw upward movement, with prominent gainers being Shriram Finance, Bharat Electronics Limited (BEL), Tata Motors, SBI Life, and Trent. Meanwhile, ITC Hotels, Maruti Suzuki, Asian Paints, Bharti Airtel, and Britannia were among the top laggards.

VLA Ambala, Co-Founder of Stock Market Today, noted that investor focus is sharp on specific stocks ahead of the budget. She advised that investors consider value buying during this period, particularly due to heightened market expectations. Ambala also emphasized the need for neutral trading strategies to mitigate potential volatility as indices approach their monthly expiration.

Experts pointed to technical indicators, such as the cooled-off Relative Strength Index (RSI) of Nifty, suggesting potential market corrections. A cautious approach is recommended as investors prepare for a possible pullback before the budget release. The benchmark Nifty index may find support between levels 23,000 and 22,860, with resistance projected near 23,260 and 23,380 in the following sessions.

Market sentiment remains influenced by various factors, including budget anticipation and sector-specific stock expectations. The upcoming derivative expiry is expected to contribute to short-term volatility, prompting experts to suggest a strategic approach to trading. Investors stay alert to upcoming economic indicators to fine-tune their strategies.

(With inputs from agencies.)