Ruchit Jain, Senior Analyst - Technical and Derivatives, Angel Broking
Post the last week’s collapse, our markets started the budget day on a positive note with optimistic expectations from the Union Budget.
The indices traded with a positive bias as the Finance Minster announced the budget and then, we had a one way upmove post the budget speech to conclude the day tad below 14300, with whopping gains of almost 5%. We had a decent correction in the week before the Budget and the market participants had high expectations as the Finance Minister had indicated a ‘budget like never before’.
There was no unfavourable announcement and the market participants gave a big ‘Thumbs Up’ to the budget. The Banking sector witnessed a ‘Once in a blue Moon’ kind of move and the heavyweights from this sector witnessed soaring moves to take the Bank Nifty higher which posted its new all-time high and ended with gains of over 8%. All the sectors (except Pharma) participated in the rally with many stocks posting phenomenal intraday gains. With leadership back from the Banking heavyweights, the markets seem to have resumed its uptrend and thus, another ‘Higher Bottom’ is in place at last week’s low.
Thus, one should prefer to trade with the trend now until any negative signs seen and look for opportunities which could continue to outperform. The near term trading range could be wide given the recent volatility wherein the supports are now placed around 14140 and 14000, wheres resistance could be seen around 14500. (Share Manthan, February 01, 2021)