Nifty50 and Sensex were beaten down badly on the Budget Day. The benchmark indices were down 1.96 per cent and 1.88 per cent respectively for the day. Indeed, both the indices fell almost 3 per cent in their intraday trades and then managed to recover some losses from their lows.
The trigger for this sharp intraday fall came after the Finance Minister Nirmala Sitaraman announced the increase in the Security Transaction Tax (STT) for F&O transactions. The STT in Futures transaction is increased from 0.02 per cent to 0.05 per cent. In Options, the STT on both the option premium and exercise of options will now be 0.15 per cent. Previously, the STT rates were at 0.1 per cent (for Option Premium) and 0.125 per cent (exercise of options).
Sectoral performance
Barring the IT/Technology sectors, all others ended the Budget Day in red. The BSE Information Technology index rose 0.66 per cent for the day.
The BSE PSU Bank and the BSE PSU index fell the most. The indices were down 5.6 per cent and 4.17 per cent respectively. The BSE Metals, BSE Commodities, BSE Energy and BSE Capital Goods indices were also down over 3 per cent each.
What’s in store for these sectors after this fall? Here, we give two sectors that are still looking good in the charts despite the sharp fall on this Budget Day. Also, we give two sectors in which investors have to take a cautious stance following today’s fall.
Please note that the view given below is based purely on the historical price movement using technical analysis. No fundamental study is involved.
still good
BSE PSU(20,588.76): Strong support for the index is at 19,950 and 18,900. On the chart, there is a bullish inverted head and shoulders pattern visible, which strengthens the bullish case. So, as long as the above-mentioned supports hold, the bias will remain bullish. The BSE PSU index has the potential to rise to 23,000 and even 24,500 in the coming months.
Any further fall from here can be considered as a good buying opportunity.
BSE Energy (11,544): The index is currently hovering above a key long-term trendline support level of 11,280. Below that, the next support is available immediately at 11,150. The chances for the index to bounce back from either of these two supports are good. That leg of rise can take the BSE Energy index up to 12,700 initially. A decisive break above 12,700 will then clear the way for a rally to 14,000 over the long term.
This bullish view will go wrong only if the index breaks below 11,150. If that happens, a fall to 10,500 can be seen.
be cautious
BSE Metals (37,349): The index made a high of 41,045.73 last week and has come down sharply from there. This reversal is very important. Because it is happening from just below a strong long-term resistance level of 41,500. It indicates that a top is already in place. So, there is not much room left for an upside even if the index recovers from current levels.
The index can fall to 36,000 or even 35,200-34,700 from here. Failure to bounce thereafter and a fall below 34,700 will be very bearish. In that case, there is a danger of seeing 33,000-32,800 on the downside.
BSE Capital Goods (64,655): The index is hovering around a key trendline support level of 64,000. The bias is looking negative to break this support. Such a break can drag the index down to 56,000.
Short-term resistance is in the 67,000-68,000 region. Higher resistance is around 72,000. Ideally, the BSE Capital Goods index has to rise above 72,000 to turn the outlook convincingly bullish. That looks less likely at the moment.
Published on February 1, 2026