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NIFTY

Nifty saw a sharp sell-off on Budget Day, reacting negatively to the announcement of higher STT on F&O and elevated govt. borrowing estimates. The index closed at 24825, down nearly 2%, decisively breaking the earlier 25160 support, which coincided with the 200 DEMA. The prior demand zone formed by the 200 DEMA and weekly 50 WEMA has shifted lower, with immediate supports now placed near 24700 and 24240, reflecting expanded volatility and a temporary breach of the earlier base. The latest candlestick formation resembles a strong bearish continuation, negating the earlier Spinning Top & Bullish Harami combination, showing that follow?through buying failed to materialise and short?term sentiment remains cautious. Options data shows heavy put interest at 25000, though post the close below this level, it has turned into a key “battlefield” zone for next few days. On the upside, 25500 remains a strong resistance due to persistent call writing. A sustained close above 25340 is required to negate the Budget-day breakdown, while a move back above 25160 would be the first sign of stabilisation. Positional longs are advised only after confirmation, while volatility-focused strategies may remain favourable in the near term.

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