Budget 2024 : On Monday, July 22, the Indian stock market witnessed a decline, with major benchmarks, the Nifty 50 and the Sensex, closing in the red as investors adopted a cautious stance in anticipation of the Union Budget for the fiscal year 2024. The Nifty 50 index experienced a modest drop, falling by 22 points, which translates to a percentage decrease of 0.09 percent, ultimately closing at a level of 24,509.25. Similarly, the Sensex faced a setback, as it reduced by 103 points, or 0.13 percent, to settle at 80,502.08.
Despite the overall dip in these major indices, it is noteworthy that the mid-cap and small-cap sectors displayed resilience and posted healthy gains. This divergence in performance highlights a robust interest in smaller companies, which seem to be unaffected by the prevailing caution and uncertainty surrounding the forthcoming budgetary announcements. Investors in these segments have shown a willingness to engage actively, potentially fueled by optimistic forecasts and favorable market conditions that contrast with the general apprehension felt in the larger index categories. This situation indicates a complex market landscape where investor sentiment varies significantly across different market capitalizations, reflecting varied strategies and expectations in the context of the upcoming fiscal policy changes.
Market ahead of Union Budget 2024-25
The Nifty index experienced a notably volatile trading session as market participants braced themselves for the highly anticipated budget announcement day. This forthcoming event is poised to play a pivotal role in determining the future directional trend of the indices, leading to increased speculation and fluctuation in market movements. According to Vaishali Parekh, who serves as the Vice President of Technical Research at Prabhudas Lilladher Pvt. Ltd., the Nifty index is expected to find crucial support around the 24150 level. This support level is essential for maintaining the index’s stability and preventing any significant downturns.
Conversely, Parekh notes that a decisive breach above the 24800 mark would signal a potential shift in momentum. Such a breakthrough could trigger a fresh wave of upward movement in the Nifty index, indicating that bullish sentiment is gaining traction among investors. As traders closely monitor these key levels, the outcome of the budget announcement will likely influence not only the Nifty index but also the broader market landscape in the coming days. The interplay between these support and resistance levels will be a critical focus for market analysts and investors alike as they assess potential strategies in response to the impending news.