The market is likely to remain highly volatile amid Union Budget and the ongoing earning season.
The market witnessed selling pressure for six consecutive sessions, with the benchmark indices losing over a percent each in the week gone by. The BSE Sensex slipped 2,592.77 points, or 5.3 percent, to end at 46,285.77 and the Nifty50 fell 737.3 points or 5 percent to finish at 13,634.60
The short term trend of Nifty continues to be weak. The negation of the upside bounce attempt and the downside break of weekly support signals more declines for the Nifty. The Union Budget could play a vital role to show the direction to the market. Any rise from here can face resistance at around 13,750-13,800. The near- term downside targets to be watched for is around 13,050 (20-week EMA).
How to trade the BUDGET:
There will be a great amount of Volatility expected, hence we advise NOT to initiate any momentum trades before/immediately after the Budget speech.
We remain cautious about more trades.