NIFTY50 ends January in red, What's in store for budget day? here is what charts suggest

NIFTY50 is trading in red after shedding nearly 200 points ahead of the important Union Budget session. Investors and market participants will be keenly watching the budget announcements as we tread into a volatile environment on the external front. NIFTY50 is up 9.2% in the last 12 months, posting a resilient show despite multiple headwinds.

On the fundamental front, the NIFTY50 is expected to show a gradual increase in earnings after lower inflation, lower interest rates and reduced direct and indirect reforms show the full effects. However, on the technical front, the markets are trying to find support at crucial levels after correcting from the record high levels. Here is how markets are placed ahead crucial budget session on Sunday.

NIFTY50 daily chart

On the daily charts, NIFTY50 is hovering in high volatility on Friday, recouping the early morning losses. The benchmark index has been trading in the range of 25,000 to 25,500 for the last eight trading sessions, showing signs of exhaustion in the selling pressure. The India- EU trade deal, somewhere, helped to boost investor confidence in the gloomy external environment.

Despite the volatility, the 200 EMA holds strong support in the medium term as NIFTY50 swung back from the respective level. Short-term traders are now eyeing the NIFTY50 to break the 50 EMA level at 25,310 in the near term to ride the momentum back to the 26,000 levels.

NIFTY50 weekly chart

On the weekly front, the NIFTY50 has taken the support of the 50 EMA level, which was previously crossed from below in April 2025. So, for the medium traders, the 50 EMA level on the NIFTY50 of 25,000 remains a crucial support. However, on the upside, the charts show the 20-weekly EMA level of 25,565 as a strong resistance level.

In summary, NIFTY50 index is suitably placed after correcting upto 5.5% from the recent record high levels. Experts believe that the correction provides a reasonable risk to reward ahead of the budget session, with strong support at 25,000 levels and a near term resistance at 25,500 levels. A breakout or breakdown from this range will provide a decisive direction for the markets.