As expected, Nifty was unable to sustain itself above 14650 and slipped till 14371. The bout of profit-taking will continue for some more trading sessions, before the union budget announcement.
Nifty has already broken its trendline three times in previous days and now it is precisely on its crucial edge point which is to be broken the fourth time on Monday, coming week.
There are high chances that we see the NIFTY continuing with its corrective activity within a broad range and on lower volumes. As we approach the Union Budget, the volatility is likely to increase over the coming days.
The coming week is likely to see the levels of 14450 and 14530 as potential resistance points. The supports will come in at 14250 and 14000 levels. The trading range is expected to remain wider over the coming week as well.
Even, the big event of the union budget announcement is round the corner It is time to avoid chasing the high beta stocks and those stocks that have run up too hard over the previous weeks.
Even if some short-term momentum is seen over the coming days, just remember, it will be speculatively built up ahead because of the Union Budget only.
The maximum you can stick with defensive stocks like IT, Pharma, FMCG, and Consumption.
This time some budget allocation announcements could be specific to the infrastructure and agriculture sector also.
Any new purchases from this point should be kept extremely stock-specific and exposures should be kept at modest levels.
Happy Investing
Keep Trading
Regards,
Neeraj Bhatia
Managing Director
Technical Analyst
www.crbpvl.com
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