Level-based trading ideal for investors
As long as Bank Nifty is trading above 45,600pts, it can go to 46,300 and 46,600 levels. Below 45,600pts, it would gradually fall towards 45,200/45,000 levels
Mumbai: Surprisingly on the day of Interim Budget-2024, the benchmark indices saw range-bound activity, with BSE Sensex was down 107 points. Among sectors, the PSU Bank index was the biggest gainer, rising over three per cent, while profit-booking was seen in digital and metal stocks, resulting in a decline of over one per cent in both indices.
Technically, Sensex has formed a small bearish candle and currently, it is consolidating near the 20-day SMA (Simple Moving Average). For traders now, the 20-day SMA or 21600/71500 would act as a crucial level. Above this, the market can jump up to 72,000 levels.
On the other hand, the structure may change below 71,500 and the market may slip to 71,200-70,850 levels. “Our view is that the current market structure is non-directional so level-based trading would be the ideal strategy for day traders,” says Shrikant Chouhan, Head-Equity Research, Kotak Securities. As long as Bank Nifty is trading above 45600 it can go to 46,300 and 46,600 levels. Below 45,600, it would gradually fall towards 45,200/45,000 levels.
Prashanth Tapse, Senior VP (Research), Mehta Equities says, “Nobody was expecting any major announcement in this Budget and hence we saw a range-bound trend with a negative bias. Global markets too were subdued and hence select profit-taking was seen in telecom and realty stocks.”
