As the Indian budget approaches, investors and traders are eager to gain insights into the likely market movements and trends. In this blog post, we will analyze the current view on Indian index, particularly Nifty and Bank Nifty, and outline potential trading opportunities that may arise following the budget announcement.

Nifty Analysis:

At present, the Nifty index is exhibiting a LH LL (Lower High Lower Low) structure, indicating a sell zone in the regression trend. However, there has been notable covering in the last 3-4 sessions, suggesting a potential change in the market sentiment. Against this backdrop, it is crucial to keep a close eye on the resistance level at 23795 - a breach of this level could present a short opportunity. On the other hand, two consecutive days of closing above 23795 would signify further upside potential in the market. However, it is important to note that, for the time being, the Nifty index remains a sell-on-rise market.

Bank Nifty Analysis:

Compared to Nifty, the banking index - Bank Nifty - appears much weaker in terms of structure. The support level is currently situated around the 48200 zone, while resistance is anticipated around the 51200 zone. Thus, it would be prudent to watch out for the 51200 zone as an opportunity to create a short position. However, if we witness two consecutive days of closing above 51200, it would negate the downside move and alter the current sell-on-rise structure driven by the budget.

Conclusion:

As we eagerly await the budget announcement, it is crucial to closely monitor market sentiments and trends. Both Nifty and Bank Nifty are currently presenting interesting opportunities for traders and investors. Regarding Nifty, the resistance level of 23795 holds the key to determining the short-term market direction. Meanwhile, Bank Nifty's weaker structure prompts a cautious approach, focusing on the resistance level at 51200 for potential short positions. It is essential to stay updated with the latest developments following the budget to make informed trading decisions.

Remember, trading in the stock market involves risks and it is always advisable to consult with a professional financial advisor before making any investment decisions. Stay tuned for further updates and analysis!