The February series kicked off on a strong note with several noteworthy developments in the benchmark index. The upside momentum continued for the fourth consecutive session on Friday (January 31). After opening with a positive note, the market continued with upside momentum that lasted till the end. Intraday dip in between has been bought into, with the market closing higher ahead of Union Budget.

All eyes are now on Union Finance Minister Nirmala Sitharaman who will present the Union Budget on Saturday, February 1, 2025.

The Nifty 50 index maintained a positive tone from the outset, advancing steadily throughout the day, driven by optimistic expectations from the Union Budget. The index fell 0.6% in January, down for the fourth straight month for the first time since 2001.

The Nifty reached its highest level since January 9, 2025, closing at 23,508 – up 258 points or 1.11%. The upward momentum extended beyond large-caps, with the Nifty Midcap 100 Index rising 1.9% and the Smallcap 100 Index advancing 2.11%.

Market heavyweight Larsen & Toubro Ltd. emerged as the primary contributor to the index’s advance, climbing 4.3%, while Tata Consumer Products Ltd. led the gainers with a 6% surge.

According to Shrikant Chouhan of Kotak Securities, the December quarter earnings season has been broadly in-line with tepid expectations of the Street; however, management commentary remained uninspiring, further weighing on sentiments.

The Economic Survey 2024-25 reinforced confidence in India’s robust economic fundamentals, suggesting that the current investment slowdown is transient.

Additionally, positive global cues and better-than-expected results from major companies are also contributed to the upward trend.

Stocks like Vishal Mega Mart, Aster DM, LIC Housing Finance, Poonawalla Fincorp, IRB Infra, Pfizer, City Union Bank, and Karnataka Bank—which reported their Q3 earnings after market hours on Friday—will be in the spotlight on Saturday.

Foreign investors remained net sellers in the cash market on Friday, while domestic investors were net buyers.

What do the Nifty 50 charts indicate?

The bearish pattern of lower top and bottoms of the last one month seems to have reversed, as the Nifty closed above the recent lower top of January 21 at 23,426 levels.

According to Nagaraj Shetti of HDFC Securities, the underlying trend of Nifty remains strong. Having surpassed the hurdle of 23,500 levels, bulls could advance towards another resistance of 23,800 levels in a short period of time. Immediate support is at 23,400 levels.

Rupak De of LKP Securities said the Nifty has given a falling wedge breakout, indicating a short-term bullish reversal. The index has also moved above the 21-period EMA, reinforcing the positive momentum.

Additionally, the current RSI reading supports a strong upward move in the market. However, much will depend on how market participants react during and after the budget. Support is placed at 23,300–23,200, while resistance is seen at 23,600 and 23,800.

The Nifty has shown a remarkable rebound in recent sessions, surpassing its short-term resistance at the 20-day exponential moving average (DEMA). The index is now approaching the next critical hurdle at the 200 DEMA near 23,650, and a decisive breakout could pave the way for further gains toward the 23,900 zone, said Ajit Mishra of Religare Broking.

However, Mishra said that with the Union Budget in focus, volatility is expected to remain elevated. On the downside, Nifty is likely to find support in the 22,900–23,100 range in case of a pullback.

What do the Nifty Bank charts indicate?

The Nifty Bank concluded the session at 49,587.20, marking a gain of 0.56%. The index formed a bullish candle on the daily chart, reflecting sustained upward momentum.

The index breached the previous resistance level of 49,650 intra-day, making the resistance zone fragile. A decisive move above the psychological 50,000 mark would further amplify the bullish momentum, Om Mehra of Samco Securities said.

The Nifty Bank is inching closer to the 20-day moving average (20 DMA), while the daily Relative Strength Index (RSI) hovers near the 50 level, indicating balanced momentum with a minor tilt towards the upside.

The immediate support level remains at 48,500, while the resistance is placed at 51,000, followed by 51,500. The trading range remains wider than usual due to heightened volatility expectations ahead of the Union Budget announcement.

A favourable budget could propel Nifty Bank towards its resistance levels, while any disappointments might trigger a pullback towards support zones.

Here are the stocks to watch ahead of Saturday’s trading session:

ONGC: Net profit down 31.2% at ₹8,240 cr vs ₹11,984 cr (QoQ). Revenue down 0.5% at ₹33,716.8 cr vs ₹33,881 cr (QoQ). EBITDA up 3.9% at ₹18,950 cr vs ₹18,236 cr (QoQ). Margin at 56.2% vs 53.8% (QoQ).

Hero MotoCorp: Niranjan Gupta to step down as the CEO of the company w.e.f April 30. The company has appointed Vikram Kasbekar as acting CEO w.e.f May 1.

LIC Housing Finance: Net profit at ₹1,432 cr vs CNBC-TV18 poll of ₹1,294 cr. NII at ₹1,997.1 cr vs CNBC-TV18 poll of ₹2,028 cr. Net Profit up 23.1% At ₹1,432 Cr Vs ₹1,163 Cr (YoY). NII down 4.8% At ₹1,997.1 Cr Vs ₹2,097 Cr (YoY).

Aster DM: Net profit down 68.35 at ₹56.8 cr vs ₹179.2 cr (YoY). Revenue up 10% at ₹1,049.8 cr vs ₹954.7 cr (YoY). EBITDA up 24.6% at ₹189.2 cr vs ₹151.8 cr (YoY). Margin at 18% vs 15.9% (YoY).

Vishal Mega Mart: Net profit up 28% at ₹262.7 cr vs ₹205.3 cr (YoY). Revenue up 19.5% at ₹3,136 cr vs ₹2,623.5 cr (YoY). EBITDA up 18.3% at ₹505 cr vs ₹427 cr (YoY). Margin at 16.1% vs 16.3% (YoY).

Waaree Energies: Arm Waaree Clean Energy Solutions gets notification of award NoA from Solar Energy Corporation of India Limited (SECI) for setting up production facility of 90,000/MT/Annum for green hydrogen.

Aurobindo: Arm CuraTeQ Biologics s.r.o, gets positive opinion from Committee for Medicinal Products for Human Use (CHMP) within the European Medicines Agency (EMA) for Dyrupeg. Dyrupeg is used for reduction in the duration of neutropenia and the incidence of febrile neutropenia in adult patients treated with cytotoxic chemotherapy for malignancy.

Triveni Turbine: Net profit up 35.5% at ₹92.4 cr vs ₹68.2 cr (YoY). Revenue up 16.6% at ₹503.4 cr vs ₹431.7 cr (YoY). EBITDA up 30.4% at ₹109.3 cr vs ₹83.8 cr (YoY). Margin at 21.7% vs 19.4% (YoY).