IGI Logo

Below are Views On Market consolidates after a spectacular budget week By Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking)

“The previous week was fabulous for our market after an excellent Union Budget, like never before as promised by the Finance Minister. Before anyone could realize, markets were considerably off pre-budget lows. This Monday, trading started with the similar kind of optimism to clock fresh record highs. However, there was no real momentum in the move. In fact, the index kept oscillating within a slender range throughout the remaining part of the week. Despite some intraday volatility, the index managed to maintain its positive posture and eventually ended the week by adding another 1.60% to the previous weekly close.

As far as this week’s price action is concerned, it can be construed as a breather after the previous week’s marathon rally. Although, the bears tried to take the charge, all attempts turned unsuccessful. So despite having some fatigue around highs, market was not willing to surrender at all and hence, slipped into a consolidation mode. Now, taking a glance at all time frame charts, we are unable to see any key observation. Hence, 15300 – 15000 to be seen as crucial range and a breakout on either side should ideally dictate the direction. But in case of an upside breakout, we would avoid aggressive participation; because as of now we do not see Nifty going beyond 15450 – 15600 in the same leg of the rally.  So we would continue to advise booking profits if Nifty enters this mentioned zone. On the flipside, the action below 15000 would be an interesting one to participate in. In this scenario, a healthy profit booking towards 14600 – 14400 cannot be ruled out.

Ideally, next couple of sessions would be quite crucial and probably we should be able to get an idea where market is heading in the near term. This week, there was only stock specific activity seen in the market; but honestly nothing was too convincing enough. So the pragmatic strategy would be to wait for some sort of trend deciding action and then one should be looking to place aggressive bets.”

Above views are of the author and not of the website kindly read disclaimer