24 February 2015


Market closed second session of the Budget week on a flat note on Tuesday as investors preferred to stay on the sidelines till the Budget gets announced (on Saturday). The consolidation in market was also ahead of expiry of February derivative contracts and Railway Budget that both will take place on Thursday. The Nifty closed at 8754, down 78. It touched a high of 8869 and a low of 8736 in trade today.
We are in for volatile movements since the implied volatility for call options are a bit less than that for the put options bears are at some advantage with price swing favoring them for the last two sessions. We need to watch out the levels of 8800 through 8850 on the upside while 8720 through 8704 would be the similar important support zone on the downside for tomorrow. The most critical level for tomorrow will be 8770 for that would determine the scales between the bulls and the bears—any sustained campaign below 8770 would clearly be negative while above that we could expect a dash towards the 8800-mark. Sustaining above 8820 would mean a strong recovery, prompted by the short covering, is well under way.
Investors remained in wait and watch mood ahead of Union Budget and they also believe that the market already run up a lot. The investor mood is very positive at the moment and investors are looking for more buy ideas than sell. The market may remain in a consolidation phase from now to the Budget. Investors should not get distracted by the Budget and continue buying the market.
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RESISTANCE: 8800, 8850, 8900
SUPPORT:  8750, 8700, 8650

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