Dear
Trader…
Markets showed volatility during the special trading session
for the Union Budget and ultimately closed nearly flat, taking a pause after
the recent rally. Following a subdued start, the Nifty future gained early
momentum but struggled to break past the key resistance at the long-term
200-day exponential moving average (DEMA), closing at 23555.55. Sector-wise,
the consumption-driven sectors such as FMCG, auto, and real estate saw decent
buying interest, largely in response to the budget’s tax relief measures.
However, stocks in defense, energy, and infrastructure showed signs of
disappointment. Broader indices followed a mixed trend, with no clear
direction.
The impact of the Union Budget could linger in the next
session, particularly in the consumption sectors. The Nifty may remain around
its current levels as market participants await the next decisive move above
the critical hurdle of 200 DEMA. Additionally, with the earnings season set to
take center stage again, traders should focus on stock selection and align
their positions accordingly.
Nifty futures opened at 23584 points against the previous
close of 23620 and opened at a low of 22422 points. Nifty Future closed with an
average movement of 292 points and a decline of around 64 points and 22555 points…!!
On the NSE, the midcap 100 index will decline 0.42% and smallcap
100 index is closing rise 0.41%. Speaking of various sectoral
indices, the NSE saw gains in only Realty, FMCG, Consumer Durables, Media, Auto
and Private Bank stocks, while all other sectoral indices closed lower.
At the start
of intra-day trading, February gold opened at Rs.81900, fell from a high of Rs.82544
points to a low of Rs.81500 with a rise of 129 points, a trend of around Rs.82100
and March Silver opened at Rs.92951, fell from a high of Rs.94400 points to a
low of Rs.92535 with a decline of 36 points, a trend of around Rs.93250.
Meanwhile, In
the last week, the benchmark indices bounced back sharply. The Nifty ended
1.74 percent, whereas the Sensex was up
over 1300 points. Among sectors, the
Realty index outperformed, rallying over 11 percent, whereas the Capital Market
and IT indices lost the most, with the Capital Market index shed 5 percent and
the IT index down by 3.25 percent. During the week, the market slipped below
23,000/75500 but, due to oversold conditions, it bounced back sharply.
After
forming a promising reversal pattern, the market held its positive momentum
throughout the week. Technically, on weekly charts, it has formed a long
bullish candle and is currently trading comfortably above its 20-day Simple
Moving Average (SMA), which is largely positive.
Technically,
the important key resistances are placed in Nifty future are at 23606 levels,
which could offer for the market on the higher side. Sustainability above this
zone would signal opens the door for a directional up move with immediate
resistances seen at 23737 – 23808 levels. Immediate support is placed at 23008
– 22808 levels.
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