Sensex of 5th Feb, 2018.

After a steady run to the top the markets stumbled post budget as the budget failed to stoke up the positive sentiment. With nothing much to salvage from the budgetary reforms the markets started giving away. The strong fast paced decline on Friday has now induced some fear into the market participants. With a buyer less markets being seen for last two days the downward momentum gathered pace on Friday. Sentiment has been scarred with markets witnessing some heavy selloff towards the end of last week.

Now with sentiments undergoing a shift, do we need to now resize our expectations. With the February series starting on the weaker side we need to look for some positive triggers to emerge and this can emerge from the events that are coming up in this week which is the RBI policy and the Q3 numbers for the remaining companies that could produce some stock specific volatility.

Major indices which was fall majorly and beaten down on daily and weekly was Small cap and Realty Sector. Gainer sector was on weekly basis is IT index.

Nifty Continues trading volatile. Intermediate and short term trend is down now. We now have to keep patience, waiting for the market to calm down.There should be a trading opportunity once the volatility cool off.

Major short term support comes for Nifty at 10600-650 and 10500

Medium term support is 10450-500 and 10000-10100

Moving to the Bank Nifty we note that the sharp decline that was seen on Friday has now come into twin confluences that could halt the decline till the event. he large body negative candle is clearly indicating the negative bias that has crept in and the persistency of the bearish trend could drag the index lower. Compared to Nifty the Bank Nifty is more precariously poised.

Short term support for bank nifty is 25800-26000.

Major support find around 25250-350 then 24500-24650.

Major sector which is Bullish is IT Sector and Major week bearish sector is Pharma.

So, wait to settle down the market and absorb the budget event. Till wait for the next trigger to trade in the market.

* This material is for information purposes only and should not be constructed as an offer or solicitation of an offer to buy or sell any securities.

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