The Indian stock market witnessed an unusually intense session on Sunday, 01 February 2026. What unfolded during the day was not just a routine budget reaction, but a reminder of how unforgiving markets can become when expectations collide with reality. For traders, especially those active in Nifty Futures, the session delivered a powerful lesson on discipline, risk management, and emotional control.
Budget days are always volatile, but Sunday’s session stood out due to the sheer magnitude of price movement. Nifty Future recorded an intraday range of nearly 756 points, a level of volatility that tests even experienced traders. In such conditions, profits and losses can change within minutes, and the only factor that separates survival from disaster is the correct use of stop loss.
Looking at the smaller intraday time-frame charts, one thing becomes immediately clear. Even traders who chose not to take any position could see how difficult it was to trade purely on levels. Shorts taken below 25,412 were quickly stopped out, while longs initiated above 25,468 also failed to sustain. This does not indicate faulty analysis; rather, it reflects the nature of event-driven markets where price discovery becomes chaotic.
Trading is a business where losses are inevitable. What matters is how controlled those losses are. Had stop losses not been used during such a violent session, the resulting damage could have been severe enough to break a trader’s confidence altogether. This is why emotionless execution and discipline are more important than prediction. For new traders, Sunday’s market should be remembered not as a bad day, but as a critical learning experience that reinforces why risk management is non-negotiable.
Why Sunday Felt Like a “Black Day” for the Market
Market history is filled with references such as Black Monday and Black Friday. What unfolded this Sunday can easily be described as a Black Sunday for Indian equities. While volatility was expected due to the Union Budget, the market reaction turned sharply negative following a key announcement that caught participants off guard.
The increase in Securities Transaction Tax came as an unpleasant surprise at a time when the market was hoping for relief in trading costs. This announcement triggered immediate panic selling. Nifty Spot, which initially appeared stable and even bullish, touched levels near 24,571 before breaking its deepest support zone around 24,613.
From those lower levels, the market attempted to stabilise and eventually recovered part of the losses, closing near 24,825. Despite the recovery, the index still ended the day with a decline of around two percent. The overall price action reflected uncertainty, nervousness, and a sudden loss of confidence among market participants.
Budget Impact, FII Reaction and What the Market Is Watching Next
Another important factor that shaped Sunday’s session was limited participation from Foreign Institutional Investors due to weekend trading. However, this makes Monday far more significant. FIIs are expected to react with full volume to the budget announcements, and their response could determine the short-term direction of the market.
From a broader perspective, the budget failed to deliver immediate triggers that could bring foreign investors back into buying mode. The increase in STT, already considered high by traders, added further pressure, particularly on the futures and options segment. While the budget includes measures aimed at supporting long-term economic growth, their benefits will take time to materialise.
In the short term, the market is left to absorb the shock. For traders, this means heightened volatility and the need for caution. For investors, the recent correction has resulted in visible damage to portfolios, but such phases are often part of longer market cycles. The key lies in patience and perspective.
Nifty Future Trading Outlook for Monday, 02 February 2026
Despite challenging conditions, trading does not stop. Like any other business, trading continues even in difficult environments, provided it is approached with discipline and realistic expectations.
At present, market sentiment remains strongly bearish. If Nifty Future opens below the previous closing zone near 24,791 and fails to reclaim this level, selling pressure may continue. In such a scenario, short trades can be considered with tight risk management. Immediate support is expected around 24,635, and if this level breaks, the market could drift further towards the 24,496 and 24,443 zones.
On the bullish side, any long trade should be considered only if the market shows clear and decisive strength. If Nifty Future manages to sustain above 24,955, it may indicate that buyers are attempting to regain control. In that case, the next area to watch would be near 25,072, and if momentum continues, the index could attempt a move towards the 25,425 region.
Given the possibility of strong FII activity and delayed reactions to budget announcements, Monday could once again see sharp intraday swings. Traders should prioritise capital protection, follow levels strictly, and avoid emotional decision-making. Preserving confidence is as important as preserving capital.
Global and Geopolitical Developments Influencing Market Sentiment
Alongside domestic factors, global developments over the last 24 hours continue to shape the broader market environment. India hosted foreign ministers from all 22 Arab League nations in New Delhi, marking a significant diplomatic engagement after nearly a decade. The discussions focused on economic cooperation, energy security, and strategic alignment, underlining India’s growing influence in West Asia.
The United Arab Emirates announced that its non-oil foreign trade has crossed one trillion dollars for the first time, highlighting successful economic diversification and reinforcing its role as a global trade hub. India also reaffirmed its support for Palestine, with the Prime Minister emphasising India’s commitment to peace initiatives during discussions with Palestinian leadership.
On the domestic front, the Union Budget 2026–27 placed emphasis on manufacturing, industrial growth, and economic resilience amid global uncertainty. Internationally, Canada, under Prime Minister Mark Carney, is repositioning itself with a strategy focused on economic independence and diversified global trade ties, reflecting broader geopolitical shifts.
Final Word
Sunday’s session was uncomfortable, volatile, and emotionally demanding. Yet, it delivered one of the most important reminders markets can offer: survival comes before profits. Discipline, patience, and respect for risk are what allow traders and investors to stay in the game long enough to benefit from future opportunities.
As the market heads into Monday, caution and clarity will be far more valuable than aggression.
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Disclaimer
The views and analysis provided above are for educational and informational purposes only and should not be considered as financial or investment advice. Trading and investing in the stock market involve risk, and past performance does not guarantee future results.
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