ALL EYES ON THE BUDGET
THE WEEK GONE BY
In last week’s report we had said 22976, the low made during the week, was the immediate support, upon breach of which, 22600 would be next downside level to eye. We had also advised holding on to trading shorts with the stop-loss of 23426.
Nifty plunged all the way to 22786 from where it reversed and surged all the way to 23546 on
Friday before closing at 23508 ahead of special live trading session to be held on 01st February, Saturday. Week-to-date, Nifty is up 1.8%. For the January month however, Nifty fell 0.6%, extending the losing streak to fourth consecutive month.
OUTLOOK
23546, the top made on Friday, exactly coincided with 34-DMA. Once this hurdle is crossed, Nifty would head to 200-DMA placed around 24000. And 1st February being the budget day, if the benchmark is able to cross 200-DMA, 34-week moving average, placed around 24360, would be next major target/resistance to eye.
On the way down, 23150-23100 is the immediate support zone, below which, 22786, the low made during the week, would be bigger support to eye. If 22786 also gives way, 20-month moving average, placed around 22500, would be next major downside level to eye.
Meanwhile, trading longs can be held on to with the stop-loss of 23100.