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Mumbai: On the day of the Annual Budget 2023, the benchmark indices witnessed a volatile trading session as BSE Sensex was up 158 points after roller coaster activity. Among sectors, almost all major sectoral indices registered profit-booking at higher levels, but PSU banks and metals indices declined the most, with both indices falling over five per cent.
Technically, the market corrected 600 points from the day's high, it also formed a long-legged Doji candlestick on the daily chart, which is indicating an indecisive trend. The current market structure is highly volatile and the market structure indicates that volatility is likely to continue in the near future.
Now, the 60,100 will act as a holy resistance zone for the traders, below this, the index may retest 58,900-58,700 levels. On the flip side, above 60,100 we can see a continuation of a pullback rally till 60,400-60,500. On dismissal of 58,700, it will slide further towards 58,400-58,200 levels where medium to long-term investors should be buyers in select stocks.
Bank Nifty halted at 42,000 and fell sharply to 39,500, marginally above the current week's low. This was parallel to the fall in the Adani Group, however, in the last half-an-hour of the time frame we saw a meaningful recovery in almost all bank stocks and finally closed at 40,500 levels.
"Technically it is following a lower top and lower bottom pattern. Once 39,400 is out, we will see further weakness towards 39,000 or 39,500 levels.
"Nifty IT and Nifty FMCG indices were resilient and they managed to close at the highest point of the day. Both these sectors should do well in an uncertain environment," says Shrikant Chauhan of Kotak Securities.
