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Sensex (58863) / Nifty (17577)

Similar to previous session, yesterday too our markets started with a decent bump up owing to favorable global cues. This early morning lead extended almost towards 17600 ahead of the budget speech. However once it started, market went into a consolidation mode and waited for some trigger from this event. The moment it concluded, we had a small bout of sharp profit booking around the midsession. Within a blink of an eye, market not only erased all gains but also slipped inside the negative terrain to test the key support of 17250. Fortunately it turned out to be an over reaction from cautious traders and hence the mighty bulls pounced on this opportunity to lift the market once again at day’s high.

Although it was not the big bang price action similar to budget day last year, yesterday’s session concluded with decent gains over a percent well above the 17500 mark. Considering the 350 – 400 points intraday range, it was almost a non – event for markets. But no negative is also considered a positive and hence, we managed to close at a comfortable position almost near day’s high. If global peers support, we will not be surprised to see an extension of yesterday’s rally in coming session. As far as levels are concerned, 17700 – 17800 are the levels to watch out for and on the flipside, 17400 followed by 17250 now becomes key supports.

Since the major event is over, the Volatility index has cooled off drastically and hence, if there is no aberration on the global front, we may see it correcting further. This development is considered as a positive sign for the market and hence, let’s be hopeful of marching towards 18000 in coming days. Traders are advised to stay on the positive side as long as key supports are not violated now.

Nifty Daily Chart

Nifty Bank Outlook - (38505)

The banking index witnessed a volatile day of trade amid the mega event of the Budget, wherein the mid session correction was bought into by the bulls to close the day on a positive note. The index has surged nearly 1.40 percent to settle a tad above the 38500 mark.

The index has witnessed a strong closure post the consolidation from the past couple of trading sessions. On the daily time frame, the index is placed well above the mean of the Bollinger band that seems to get narrower, signifying a near-term outburst in the counter. On technical parameters, the support zone shifts towards the 38000 mark, followed by the cluster of exponential moving averages placed from 37500 levels. While on the flip side, the sturdy resistance zone of 38800- 39000 needs to be breached decisively to continue the uptrend. Hence, looking at the technical setup, the index looked to be strongly poised to surge high in the near term. However, till the 39000 mark is not breached in a decisive manner, it is advisable to stay cautious in the index and focus more on the stock-specific front.

Nifty Bank Daily Chart

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