The government has increased capital expenditure to ₹12.2 lakh crore for FY27 from ₹11.2 lakh crore in the current year,key sectors with higher allocations Defence, Roads & Highways, and Railways. The fiscal deficit target is set at 4.3% of GDP for FY27, broadly in line with estimates, while the debt-to-GDP ratio is expected to decline to 55.6% from 56.1%. The Union Budget also raised Securities Transaction Tax, increasing STT on futures to 0.5% and on options to 0.15% (premium) and 0.0125% (exercise).
The rupee fell 2.3% in January o against the US dollar
FII remains seller this week only buying on January 30 and January 28 FII sold equities worth 4,050 crore on three trading session this week and buy equities worth 2,731.63 in the cash market
In our previous weekly analysis, we clearly highlighted the possibility that:
“Markets may witness a shift in trend or acceleration opposite to the prior move from this session onward.”
What followed over the next few sessions validated this observation with remarkable clarity.
Pre-Budget Phase: Momentum Built as Expected
From 27th January onward, Nifty displayed strong bullish sentiment and rallied close to 500 points ahead of the Budget. This move reflected pre-event positioning and optimism, with price respecting the broader structure highlighted in our earlier analysis.
The rally unfolded in a measured manner, aligning with expectations of trend acceleration before a major event.
Budget Day: Reversal Right on Cue
As mentioned well in advance, we remained cautious about event-day behavior, noting that markets often move opposite to the pre-event trend once the event unfolds.
On Budget Day, this exact behavior played out:
- The market reversed sharply after the pre-Budget rally
- A massive sell-off followed
- Volatility expanded decisively, confirming a shift in sentiment
This reinforced a key market principle:
Markets often discount events in advance and react once expectations peak.
Time Analysis Performance: A Week of Validation
One of the most important aspects of the recent phase was the consistency of time-based projections, which worked across normal sessions as well as during the high-volatility Budget day.
Tuesday – 27th January
- Day low formed near 1:45 PM, close to our mentioned time
- An intraday reversal around 11:45 AM, as projected
Wednesday – 28th January
- The day’s low developed close to the expected time window, keeping the time cycle intact
Thursday – 29th January
This session offered multiple confirmations:
- Day low near 1:45 PM, aligned with projections
- Swing high around 11:00 AM, as mentioned in advance
- Early stability around 9:20 AM, with the actual low near 9:45 AM
- Momentum picked up near 10:50 AM, exactly around the projected time
- Another key time window around 12:45 PM, followed by the day high near 2:45 PM
Friday – 30th January
- A swing high near 10:00 AM
- Day low around 1:15 PM, matching the mentioned time
Budget Day – 1st February
- 12:00 PM, marked as a crucial time, saw the beginning of a sharp downside move
- Later, around 1:30 PM, the market formed a swing high, again close to our projected timing
Across the week, time projections consistently aligned with reversals and momentum shifts, proving highly beneficial for the trading community.
Important Levels for the Week Ahead
With the market now entering a post-Budget price discovery phase, the following important levels should be closely monitored:
| 25566 25434 25365 | 25145 25085 24978 | 24856 24685 24538 | 24450 24331 |
Price behavior around these levels, especially when aligned with time windows, will remain crucial for understanding market intent.
Important Time Windows for the Week
Based on our ongoing time-cycle study, the following time windows are expected to remain significant for intraday activity:
Monday – 2nd February
11:00 AM | 12:50 PM | 1:45 PM
Tuesday – 3rd February
9:25 AM | 10:00 AM | 11:00 AM | 12:30 PM
Wednesday – 4th February
11:00 AM | 12:20 PM | 1:45 PM
Thursday – 5th February
10:20 AM | 11:00 AM | 1:20 PM | 2:30 PM
Friday – 6th February
9:15 AM | 11:45 AM | 1:45 PM | 2:35 PM
These windows may coincide with changes in momentum, reversals, or acceleration, and should be observed alongside price action rather than anticipated blindly.
Weekly Outlook & Closing Note
Following the sharp moves triggered by the Budget, markets may continue to experience volatile and unpredictable sessions this week. Given the expanded volatility, we remain cautious in our approach and prefer reduced activity and selective trades over aggressive positioning.
At present, we do not identify any significant time-based dates that require special attention this week. Capital preservation, discipline, and patience remain essential during such phases.
We will continue to track developments closely and reassess conditions as the structure evolves.
See you next week.
Disclaimer
Research by Team WealthView Analytics Pvt. Ltd.
SEBI Registration No.: INH000009676
Registration granted by SEBI and certification from NISM do not guarantee performance or assure returns. This report is for educational purposes only. Market investments are subject to risk.
