Nifty Forms Indecisive Candle After Budget Session
23,450 is a key level, a close above which it may rise till 23,620 levels; For positive bias; below negative, resuming downside, support lies at 23,322
Nifty Forms Indecisive Candle After Budget Session
Nifty created a long-legged Doji, hitting resistance at the 200EMA before dropping. Trading volumes were unexpectedly low. Market sentiment is cautiously optimistic, pending a closer look at the budget details
The domestic stock market closed flat to negative on a budget day. The market participants are indecisive on the impact of the budget. NSE Nifty declined by 26.35 points or 0.11 per cent and closed at 23,482.15. No sector or thematic index gained or declined by over 0.55 per cent. The Realty index is the top gainer with 0.37 per cent. Smallcap and FMCG indices gained by 0.21 per cent and 0.20 per cent respectively. On the flipside, the IT index declined by 0.13 per cent and the Healthcare index is down by 0.11 per cent. The India VIX is down by 0.56 per cent to 14.09. The market breadth is neutral as 1,419 advances and 1,328 declines. About 39 stocks hit a new 52-week low, and 132 stocks traded in the upper circuit. Kalyan Jewellers, RVNL, Zomato, Mazdock, and HAL were the top trading counters in terms of value.
The Nifty has formed a long-legged Doji candle on the Budget days. The Index faced resistance at 200 EMA, and reacted on the downside. The volumes were below the average. On a General Budget day, the lower volumes were a surprise. The market participant feels that there is nothing negative about proposals, but they need to read the fine print. The Defence and Railways sectors were disappointed as there was no mention of them. It is expected the budget will push the defence manufacturing reforms and railway infra development.
This session’s price action has not provided any clue for the direction. As it formed an indecisive candle, it is necessary close positive above the 23,620 to continue the positive bias. If it closes negative and close below the 23,450 will be negative and it will resume the downside move. Friday’s high of 23,322 is the crucial support for now. It is not an eventful day for the market.
(The author is partner, Wealocity Analytics, Sebi-registered research analyst, chief mentor, Indus School of Technical Analysis, financial journalist, technical analyst and trainer)
