26 February 2016


Week ended on a positive note. Sensex and Nifty ended higher in trades on Friday led by gains in beaten down banking and metal shares. The Sensex advanced 178 points to close at 23154 and Nifty rose 59 points to settle at 7030. Meanwhile, the government tabled Economic Survey before the parliament. The Survey pegs India's GDP growth between 7-7.75 % for the financial year 2016-17 and the report also suggested that the government would likely achieve its fiscal target of 3.9% for current financial year and stressed on importance of sticking to fiscal deficit target of 3.5%for the next financial year. This boosted the hopes of further rate cuts by the Reserve Bank of India pushing equities and bonds higher. Markets continue their ascent in the late noon trades after the Economic Survey 2016 tabled in the Parliament reinstates confidence in the growth of Indian economy for the next two years. The rally in the local markets is led by the banking shares.
Monday the budget is going to be announced very volatile trading session we are expecting for Monday. There are no clear indications as yet to suggest that it is going to be final bottom bullish market. In any case, we are in for, at least, bit of a bounce this week. The most critical zone for Monday will be between 7080 and 7135; its real test would come when it tries to clear the zone between 7150 – 7180—once this zone is decisively taken out, the market would see the next round of bulls rally.
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Resistances: 7080, 7125, 7170
Supports: 7000, 6950, 6900

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