Bajaj Broking: In a volatile session on February 2nd, Indian equity benchmarks staged a sharp recovery to end higher, recouping part of the losses seen on Budget day, with the Nifty closing near the 25,100 level. Mirroring mixed global signals, the indices started on a weak note and stayed choppy within a narrow range through the first half. Buying momentum picked up in the latter part of the session, aiding a recovery that saw the market close near its intraday highs. At close, the Sensex was up 943.52 points or 1.17 percent at 81,666.46, and the Nifty was up 262.95 points or 1.06 percent at 25,088.40. Broader markets also bounced back sharply from their intraday lows, with the Nifty Midcap rising 0.96 percent and the Nifty Small-cap gaining 0.6 percent. On the sectoral front, FMCG, auto, metals, oil & gas, energy, infrastructure and realty stocks rose 1–2 percent, while the IT index slipped 0.5 percent.

Nifty Outlook 

Index formed a sizable bullish candle which remained enclosed inside previous session price range highlight pullback after previous session sharp decline. Immediate resistance is placed at 25,200-25,250 levels being the confluence of the 200 days EMA and the price parity with the previous up move. Sustaining above the same will signal a pause in the current downtrend. Volatility is expected to remain at an elevated levels in the current week on account of the volatile global cues and RBI monetary policy outcome. Short term resistance is placed at 25,400-25,500 levels being the high of last week and previous major breakdown area. While key support is at 24,500-24,600 levels being the previous major low of October 2025 and also panic low of Budget session.  

Bank Nifty Outlook

Bank Nifty formed a bullish candle which remained contained inside previous session price range signaling consolidation amid stock specific action. Buying demand is seen emerging from the support area of 58,100-57,800 being the confluence of the recent low and the 100 days EMA. A follow through weakness below the support area will open further downside towards 57,000 levels. On the higher side only a move above 59,000-59,200 levels will signal a pause in the current downtrend being the confluence of the recent breakdown area and 50 days EMA. Volatility is expected to remain at an elevated levels in the current week on account of the volatile global cues and RBI monetary policy outcome.

Also Read: Ashika Institutional & Bajaj Broking Daily Market Closing Commentary

Motilal Oswal Financial Services Ltd.: Indian equity markets staged a strong rebound on Monday, with the Nifty recovering around 400 points from the day’s low to settle at 25,088, up 1.1%, after a volatile session. Broader markets also participated in the recovery, with the Nifty Midcap 100 gaining 1.2% and the Nifty Smallcap 100 rising 1%. The late-session rally came as investors analysed the fine print of Budget 2026. 

The Budget was largely in line with our modest expectations, but short of high impact immediate measures, signaling more of continuity in the fiscal approach of past five years. The Finance Minister balanced the imperatives of staying on the fiscal consolidation path with sustaining growth dynamics, while also seeking to fortify India’s business architecture against prevailing geopolitical headwinds.

Now coming to the sectoral performance which was largely positive, with all indices ending in the green except Nifty IT, which declined 0.5%. Auto stocks continued to be in focus, with the Nifty Auto index rising 2.1% on the back of strong monthly sales numbers from leading players. Nifty Oil & Gas gained 2%, with oil marketing companies in focus amid lower crude prices. The currency also showed signs of stability, with the rupee strengthening by 37 paise to 91.56 against the US dollar. Stock-specific action is likely to remain prominent as the Q3 earnings season gathered pace. Key results due tomorrow includes Bajaj Finance, Adani Ports, Varun Beverages and Adani Enterprises. On the macro front, markets will track the S&P Manufacturing PMI data later today, followed by the US JOLTS job openings data tomorrow. Going ahead, market momentum may stay constructive in the near term, while global cues and earnings-related developments will continue to guide stock-specific moves.