Market Watch: Nifty in a Broad Range During Budget Week
The Indian equity market may continue to drift within a defined band as investors weigh the budget announcements while keeping an eye on global cues. According to Milan Vaishnav, a well-known market analyst and MSTA, the Nifty may face minor downside but is unlikely to experience a major sell-off. The current setup suggests a broad range trading phase, with the key support near the 24,500 zone and resistance around 24,750. Traders and investors will want to watch how the index behaves around these levels as the Budget week unfolds.
Paytm Rebound: A Cautious Optimism
Within the broader market, Paytm is highlighted as a potential rebound candidate. A successful recovery here could serve as a bellwether for the broader technology and fintech segments. Vaishnav notes that while downside risks exist, a measured upmove in Paytm could lift sentiment and lend support to related pockets within the technology and consumer internet space. Traders may look for a favorable risk-reward setup if Paytm breaches nearby resistance levels with solid volume.
Upside in HCL Tech and Tech Mahindra
Beyond the fintech flagships, Vaishnav points to technically attractive setups in HCL Technologies and Tech Mahindra. Both names have shown resilience in recent weeks, and the analyst suggests there could be upside catalysts in the near term. For HCL Tech, improvements in operating margins, growing digital services demand, and steady client wins could help push the stock higher if it sustains above critical moving averages. Tech Mahindra, with its focus on next-generation IT services and strong deal momentum, could benefit from portfolio upgrades across verticals and a favorable rupee environment.
What Traders Should Watch
1) Nifty Support and Resistance: The 24,500-24,750 range remains a crucial make-or-break zone. A test of support may attract fresh buying, while a break above resistance could lead to a quicker continuation of the up-move. 2) Stock-Specific Triggers: Paytm’s price action around important support or resistance levels will be closely watched, especially if volume confirms a rebound. HCL Tech and Tech Mahindra will be on investors’ radar for potential breakout patterns, particularly if they sustain above key moving averages and show improving relative strength. 3) Budget Week Cues: Any fiscal measures, sector-specific incentives, or policy changes could quickly shift market breadth. Vaishnav emphasizes that while macro headlines matter, the market’s immediate path will hinge on price action within the established range.
Consolidating View: A Constructive Yet Cautious Tone
Vaishnav’s perspective reflects a market that is constructive but not overly bullish until clearer upside catalysts emerge. A choppy, range-bound environment often favors selective stock picking and disciplined risk management. Investors may consider building exposure gradually, focusing on high-quality names with solid earnings visibility and reasonable valuations. In such a setting, the performance of Paytm, the earnings trajectory of HCL Tech, and the strategic moves at Tech Mahindra could serve as useful barometers for broader tech and consumer internet themes.
Bottom Line
In Budget week, the Nifty is likely to stay within a defined corridor with limited downside risk, according to Milan Vaishnav. A rebound in Paytm and upside action in HCL Tech and Tech Mahindra could provide pockets of opportunity for traders who focus on disciplined entry points, robust risk controls, and a clear read on the price action around the 24,500-24,750 band. As always, confirmation through volume and follow-through in the days ahead will be essential before committing to larger bets.
