Indian Market Pre Market Report (Feb 2, 2026) — Cautious Sentiment After Budget Shock

Context note (important): Indian markets were open on Sunday, February 1, 2026 for the Union Budget session. So today’s pre-market levels are based on Feb 1 close (not Friday).

🏛️ Union Budget 2026: What the Market Liked — and What It Didn’t

Indian Markets Pre Market Report Starts with Budget Outlook: The Union Budget 2026 left the market divided. Long-term investors found comfort in the government’s steady fiscal approach, but traders were clearly unsettled. The immediate reaction on Dalal Street had more to do with costs, liquidity and positioning than with growth itself.

From a financial market point of view, this Budget strengthens India’s long-term framework, even though it has created short-term discomfort.

What Worked in the Budget

One thing the market cannot ignore is the government’s continued focus on fiscal discipline. There was no aggressive spending spree and no attempt to artificially push growth. That matters. Stable fiscal numbers help keep bond yields under control, which in turn supports equity valuations over time.

The other clear positive is the capex story. Infrastructure, transport and public spending remain key pillars. This keeps the investment cycle alive and offers visibility to capital goods companies, construction players, cement makers and engineering firms. For the market, this is not a one-quarter story — it plays out over years.

Manufacturing and domestic value creation also remain in focus. While there were no flashy announcements, the direction is consistent. Companies linked to local demand, MSMEs and industrial supply chains stand to benefit gradually rather than overnight.

Importantly, the Budget sends a message to global investors: growth will be pursued, but not at the cost of stability. That message matters for foreign investors who look beyond daily market swings.

What Spooked the Market

The sharp sell-off after the Budget was triggered mainly by the STT increase on derivatives. This caught traders off guard. For a market that has become heavily dependent on F&O activity, higher costs immediately change behavior.

Liquidity concerns followed quickly. Higher transaction costs usually mean lower volumes, at least in the near term. That was visible in the spike in volatility and sudden intraday swings.

Another point of disappointment was the lack of strong, immediate relief for the middle class. Expectations around tax benefits and consumption support were high. When those expectations were not met, consumption-linked stocks came under pressure.

Market-linked businesses — brokerages and trading platforms — also felt the heat, as lower speculative activity directly affects volumes.

How the Market May Move from Here

Volatility is likely to stay for a while. Traders will take time to adjust, and positions will be rebuilt slowly.

But once the dust settles, the bigger picture remains unchanged. Infrastructure spending, fiscal control and domestic growth continue to support the long-term India story.

The Budget may have shaken confidence in the short run. It has not broken the market’s foundation.

🌍 Global Cues (Overnight + Early Asia)

🇺🇸 US Markets (last session close)

Risk mood turned cautious as markets reacted to the Fed-chair nomination news and rate-path uncertainty.

• Dow: 48,892.47 (▼0.4%)

• S&P 500: 6,939.03 (▼0.4%)

• Nasdaq: 23,461.82 (▼0.9%)

Single-line reason: Metals volatility + rate uncertainty pushed investors into “risk-off” mode.

🇪🇺 Europe (previous session close)

European tone was mixed-to-positive in parts, but global risk sentiment stayed fragile.

• DAX: 24,376.15 (Jan 30 close) 👉investing.com

🌏 Asia (early trend today)

Asia opened shaky, tracking commodity swings and cautious positioning ahead of a heavy global week (earnings + macro).

• Reuters noted MSCI Asia-Pacific down and Nikkei higher, while risk appetite remained uneven.

🧭 GIFT Nifty, Trade Setup & Key Trigger

🇮🇳 GIFT Nifty (early indication)

• GIFT Nifty: ~24,880.50 (early reading)

What it signals: a mildly positive/flat start after a sharp Budget-day selloff — but volatility can stay high.

📌 Indian Market Snapshot (Last Session Recap — Feb 1, 2026)

Indices Close (Budget Day)

• Nifty 50: 24,825.45 (▼1.96%)

• Bank Nifty: 58,417.20 (▼2.00%)

• Sensex: 80,722.94 (▼1.88%)

What moved the market?

Big reason: The Budget’s STT hike on derivatives hit sentiment hard, especially in high-beta counters and trading-linked themes.

For More details keep reading Budget Shock, Cautious Close — Indian Markets Post Market Report (01.02.2026)

🎯 Indian Markets Pre Market Report Today’s Key Levels (Support & Resistance)

Levels are calculated from Feb 1 High/Low/Close (classic pivot method).

🟦 Nifty 50

• Pivot: 24,947

• Support: 24,454 / 24,084

• Resistance: 25,318 / 25,810

Market read: Below 24,947 keeps bias cautious; reclaiming 25,318 improves stability.

🏦 Bank Nifty

• Pivot: 58,692

• Support: 57,523 / 56,628

• Resistance: 59,587 / 60,756

Market read: Banks need to reclaim ~58,692–59,000 zone for confidence.

🟥 Sensex

• Pivot: 81,116

• Support: 79,506 / 78,289

• Resistance: 82,333 / 83,944

🧩 Derivatives Dashboard (OI, PCR, Max Pain, VIX)

📊 PCR + Max Pain (Market Sentiment)

• Nifty (PCR OI): 0.59 | Max Pain: 25,500

• Bank Nifty (PCR): 0.85 (24-Feb expiry view)

How to read this today:

• PCR < 1 generally reflects cautious / call-heavy positioning (not a guarantee, but a mood check).

• Max pain zones often act like a “magnet” near expiry, but Budget weeks can break normal patterns.

🌡️ India VIX (Volatility)

Volatility jumped around Budget week and remains a key “risk meter.” Budget-week options pricing and volatility behavior has been a major theme this time.

🧾 India vs US Trade Deal — What to Track

Commerce Minister Piyush Goyal has recently shared updates around the India–US trade discussions and the broad stance remains that negotiations must protect national interest while seeking workable terms.

Market angle: Any clarity on tariffs/market access can swing:

• export-heavy sectors (IT/services, pharma, auto ancillaries),

• and FX-sensitive names.

🏢 Major Q3 Results Watch (2 Stocks in Focus)

This is a results-heavy zone, so stock-specific moves can stay sharp.

✅ Stock Theme 1: Banks/Financials

Budget + rate expectations + liquidity = fast swings in banks. PSU banks were notably weak post Budget reaction.

✅ Stock Theme 2: F&O / Market-linked businesses

Derivatives cost changes (STT impact narrative) can shift sentiment in trading-led counters and brokerage-adjacent themes.

(If you want, tell me the 2 exact stock names you want included daily — I’ll lock them as your “results radar” pair.)

🧺 IPO Updates (Mainboard/SME)

🔔 Key IPO timeline (recently active)

• Accretion Nutraveda IPO: Open 28 Jan, Close 30 Jan, Allotment 2 Feb, Listing 4 Feb

• Kanishk Aluminium IPO: Open 28 Jan, Close 30 Jan, Allotment 2 Feb, Listing 4 Feb

💰 FII & DII Data (Latest)

For Feb 1, 2026 (Budget session):

• FII: -₹588.34 Cr (net sellers)

• DII: -₹682.73 Cr (net sellers)

Takeaway: Both sides selling on Budget Day = confidence shake. Today’s opening tone depends on whether DIIs return as buyers near supports.

🛢️ Commodities & 🪙 Metals (Latest Levels)

🪙 Gold / Silver

• Gold: ~ 1,48,104/1og

• Silver: ~2,65,652/kg

🛢️ Crude Oil

• Brent: ~$66.70/bbl

• WTI: ~$62.65/bbl 👉Reuters

Single-line reason: Oil eased on signs of US–Iran de-escalation chatter.

💱 Currency Check (USD/INR)

• USDINR (futures indication): ~91.98

What it means: A firm USD/INR usually keeps importers under pressure and can cap risk-on moves.

🧠 Today’s Trade Plan (Simple, Practical)

✅ If you are trading (short-term)

• Prefer risk-defined setups (hedged options, smaller size).

• Nifty needs to hold 24,454 support zone to avoid deeper panic.

• Watch VIX + first hour breadth; if selling broadens, don’t average fast.

✅ If you are investing (long-term)

• Don’t chase panic.

• Build in tranches near strong supports (index + quality leaders).

• Keep cash buffer: volatility after Budget can last more than a day.

✅ Quick Summary (Morning Call)

• Sentiment: Cautious, stabilizing attempt after Budget shock

• GIFT Nifty: Slightly positive cue

• Big drivers: STT/derivatives sentiment, volatility, global risk mood

• Levels to watch: Nifty 24,454 support / 25,318 resistance

• Flows: Both FII & DII sold on Budget day

👉Further reading

Corporate Actions Made Simple for Beginners Stock Market 101-Lesson 15

India’s New Labor Codes: Why Companies Are Taking “Thousand-Crore”

How Much Should You Invest Every Month? A Simple Guide for Salaried People

Stock Market 101–Lesson 14 IPOs for Beginners: Process & Allotment Basics

Disclaimer:

This report is for educational and informational purposes only. It is not investment advice or a recommendation to buy/sell any security. Please consult a SEBI-registered advisor before investing.