Budget 2022 has had a positive reaction in the stock markets. After a gap-up opening, the index made an intraday low at 17,244.55 level but bounced back and managed to close the session above 17,500 mark. While Bank Nifty closed the session at 38505.5 level with a gain of 530.15 points
The benchmark Sensex was up 848.40 points or 1.46 percent at 58,862.57. The broader Nifty was up 237.00 points or 1.37 percent at 17,576.80. About 1,683 shares have advanced, 1,583 shares declined, and 98 shares are unchanged.
On the sectoral front, all the major indexes ended in green except Nifty Auto, Energy while Nifty Metal, Pharma were the top gainers. Stocks like Tata Steel, Sun Pharma, Indus Ind Bank and Shree Cements were the top gainers while BPCL, IOC, TATAMOTORS and M&M ended in the red.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, said, "Despite a roller-coaster session, markets ended with solid gains at the end, as investors cheered the government's focus on higher growth and capital expenditure boost in the Budget. The north-bound trend was also aided by overnight gains in the US market and a strong European markets trend in early trades. On daily charts, the market maintained an uptrend continuation formation and after a long time it succeeded to close above the 50 day SMA which is broadly positive. For the day short term traders, 17,400 and 17,250 would be key support levels to watch out. Above the same, the Nifty would touch the level of 17,750-17,850. However, if the index slips below 17,500, a quick intraday correction could drag down the index up to 17,400-17,350 levels."
Palak Kothari, Research Associate, Choice Broking, said, "On Budget 2022, Finance Minister Nirmala Sitharaman announced measures to shore up the economy as it recovers from a recession during the Covid-19 pandemic. An aspirational, responsible, and growth-oriented budget. On the technical front, the index has taken good support at 78.6 percent RL of its prior rally and given closing above 50 percent RL which points out northward journey in the counter. Furthermore, the index has given a breakout of the falling trend line and formed a hammer kind of candle which suggests bouncing back on the counter.
"On an Hourly Chart, the index has been trading with the support of the middle band of Bollinger as well as 50-HMA which suggests strength for the next session. Moreover, the momentum indicator Stochastic and MACD are also trading with positive crossover on an hourly time-frame which adds bullishness in prices. At present, the Index has support at 17,240 levels while resistance comes at 17,650 levels, crossing above the same can show 17800-18,000 levels. On the other hand, Bank Nifty has support at 37600 levels while resistance at 39,000-levels."
Deepak Jaani said, "Nifty ended in the positive boosted by growth inducing measures of the Union Budget. Advance decline ratio also remained in the positive. Markets are enthused by the credible conservative estimates in the Budget. However, high inflation and interest rates remain the two spoilsports. 17,745-17,805 could be the next resistance for the Nifty while 17,374-17,410 could be the support."
