Major Asian stock indices were up with gains on Monday morning. KOSDAQ was trading over 2% higher, followed closely by KOSPI.
Technical analysts say that Nifty formed a long negative candle on the weekly chart, after a gap of four months as they warned of weakness in the short term Nifty trend.
Sensex and Nifty enter this week’s trading session with caution after having slipped consecutively for six days. To add to the jittery nerves of traders, today the Finance Minister will unveil her Union Budget for the next fiscal year. SGX Nifty was trading 28 points higher during the early hours of trade, hinting at a gap-up start for Dalal Street. Major Asian stock indices were up with gains on Monday morning. KOSDAQ was trading over 2% higher, followed closely by KOSPI. TOPIX Nikkei 225, Hang Seng, and Shanghai Composite were also trading in the green.
What do the Charts say: Technical analysts say that Nifty formed a long negative candle on the weekly chart, after a gap of four months as they warned of weakness in the short term Nifty trend. “Any rise from here could encounter resistance around 13750-13800 levels. The near term downside targets to be watched for Nifty around 13050 (20 week EMA) for the next few weeks,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Support and resistance levels: The crucial supports would be at 13570/46100, 13440/45700 and 13250/45000 levels, according to Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities. “Closing below the levels of 13200/45000 would send the market to retest the previous all-time high level, which is at 12450/43000 levels. On the higher side, 14000/47200 and 14200/47800 would be major hurdles. In the best-case scenario, we could see 14500/49000 levels and trend would turn extremely bullish if Nifty crosses 14800/50200,” he added.
Union Budget: The Union Budget 2021-22 is likely to keep traders on the edge today. Expectations are high from the Finance Minister who has already said it will be a ‘never before Budget’. So far, whenever Nirmala Sitharaman has unveiled her Budget, Dalal Street has not been impressed. The Finance Minister will present her Budget at 11 AM today. Here’s how Sensex and Nifty have reacted to the last five Union Budget speeches.
FII and DII data: In the previous week, Foreign Institutional Investors (FII) were net sellers of domestic equities on all trading days. FIIs sold Rs 12,095 crore worth of domestic securites. Overall for the month of January, FIIs were net buyers of domestic equities. Domestic Institutional Investors, on the other hand, were seen buying Rs 3,789 crore worth domestic stocks.