Amid volatile and stocks specific moves last week, the markets ended the week on positive note up above a per cent and little short of major resistance of 11050. Although the markets during the week traded lower with uncertainties of interim budget, it was only on Thursday and Friday, on the interim budget day, that the markets moved higher to finish the week on positive note. The interim budget had mix reviews and showed the Government’s intention to give sops to middle class with tax exemption and cash transfer to the farmers. It needs to be seen how this is implemented and from where the funds will come- the Govt. will have to answer.
Going forward the focus will now be on the world economy and Market behavior and the forthcoming general Elections. Hence it appears that range bound trade will continue for some more time unless the market gets some significant good or bad news flows to pull or push the markets beyond range. The structure of the market and stock reveals that nevertheless stocks specific moves would continue.
Technical–Technically the market is gone for consolidation phase once again with 10750 as short term support and 11050 as resistance, with major breakout at 11200 and support at 10600, these levels will make or mar the markets. Below a close of 10600 the markets will test 10500 and then perhaps 10000, or even lower. On the higher side if the Nifty manages to close above 11050 then initially it would test 11200 and then 12000 plus levels will be on cards. In the interim period the range one needs to watch out is 10600 and 11050 and in a little longer term one needs to look out for 10500 and 11200.