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Benchmark Indices recorded a worst week in over two months clocking the biggest weekly losses. Nifty Bank also recorded the biggest weekly fall in a year. The biggest contributor to the fall of Nifty and Bank Nifty was HDFC Bank. Sectoral Indices posted a mixed performance with the oil & gas sector gaining the most and Nifty Bank falling the most being the worst performer.

Interim Budget 2024 will be announced on 1st February by Union Finance Minister Nirmala Sitharaman. It is expected that the government will boost welfare spending. It might plan to reduce the fiscal deficit to 4.5% of GDP by FY26. Tax relief measures and a few announcements to support agriculture and the rural sector can be expected while maintaining the capex push. As this sector faced near-term challenges such as poor weather conditions, climate change, and inflationary pressures.  Government spending on capex is expected to increase to offset global growth concerns. Allocation of more funds to the infrastructure segment and focus on the growth of digital India, green hydrogen, EVs, and broadband is expected.  

As December Quarter earnings season started with IT companies posting their Q3FY24 numbers. It was a seasonally weak quarter for them due to higher furloughs resulting in lower billable hours. The banking sector is expected to perform well amid robust credit growth and sustained momentum. The financial sector is expected to post strong numbers due to robust growth prospects. The Pharma sector is also expected to perform well due to domestic market growth. The chemical sector might not see significant growth.

Q3 earning season will remain in focus as some major companies will announce their quarterly numbers such as Colgate Palmolive, Coforge, Axis Bank, Havells, Indus Tower, L&T Finance, United Spirits, Bajaj Auto, Canara Bank, Ceat, IOC, Tata Steel, TechM, ACC, HPCL, JSW Steel and many more.

The market will also react to domestic and global events, FII/DII investment patterns, the movement of the rupee against the dollar, crude oil prices, and the upcoming budget would be in focus.  

After three days of losing streak, both Sensex and Nifty rebounded sharply on Friday, led by a rebound in finance and information technology stocks and tracking gains in global peers. Nifty settled the day at 21622.40, while, Sensex ended the day at 71683.23.
 
In Nifty, the index may take support at the 21,300-21,400 zone, break of the support can bring more selling pressure, whereas the 21,750-21,850 zone is expected to be a key hurdle on the higher side. While maximum option writing stands at 21500 & 21800.
 
Shifting focus to Bank Nifty, a crucial support level lies at 45000 with the possibility of the price remaining sideways in the range of 45000 to 47000. While hurdles are placed at 46500 to 47000. A breach may trigger selling pressure, potentially leading to a downside.