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Below the Pre-Market Comment by Hardik Matalia, Derivative Analyst, Choice Broking

The benchmark Sensex and Nifty indices are expected to open negative on Feb 03, following GIFT Nifty trends indicating a loss of 195 points for the broader index.

After a negative opening, Nifty can find support at 23,200 followed by 23,100 and 23,000. On the higher side, 23,500 can be an immediate resistance, followed by 23,600 and 23,700.

The charts of Bank Nifty indicate that it may get support at 49,300 followed by 49,000 and 48,800. If the index advances further, 49,700 would be the initial key resistance, followed by 50,000 and 50,300.

The Foreign institutional investors (FIIs) remained net sellers on February 1, as they offloaded equities worth Rs 1,327 crore, while domestic institutions bought equities worth Rs 824 crore on the same day.

INDIAVIX was negative on Saturday down by 13.25% and is currently trading at 14.0950.

On Saturday, the Indian markets experienced high volatility due to the Budget. Strong buying was seen at the start, but the index failed to sustain higher levels and ended on a negative note below the 23,500 mark. Meanwhile, global markets traded with mixed sentiment on Friday, while Foreign Institutional Investors (FIIs) remained net sellers, raising concerns about the sustainability of the ongoing rally.  On the downside, 23,200 serves as an immediate support level, followed by 23,000. On the upside, immediate resistance is at 23,500, with a critical hurdle near 23,700. A sustained close above these resistance levels could push the markets beyond the 24,000 mark. Traders should remain cautious ahead of the Union Budget, as high volatility is expected. However, buying on dips can be considered as long as the Nifty index holds above 23,000.

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