Want to invest in stocks? Here's how to play the market ahead of Budget

Till the Nifty is trading above 10,600 levels, one should not be negative on the overall trend. Every dip should be seen as a buying opportunity with an intention to stay in trade

BSE Sensex: The index has managed to climb to 39,550 levels successfully, which was the resistance earlier. However, the index needs to cross 40,100 for a bigger breakout as per the daily chart. That said, the current trend remains positive, as the index trades above major support of 38,900. The momentum shows a consistent effort to absorb selling arising towards 40,100 levels. The technical indicator - RSI (Relative Strength Index) - has made a positive crossover, a sign of a possible rally ahead. CLICK HERE FOR DETAILED CHART VIEW

 

Nifty50: Though the benchmark index is witnessing selling pressure on every rise, the strength and momentum to scale up to higher levels have been stronger and supportive. Till the index is trading above 10,600 levels, one should not be negative on the overall trend. Every dip should be seen as a buying opportunity with an intention to stay in trade, till the above-mentioned level is not breached. A major breakout is likely above 12,000 mark. Both the key technical indicators, RSI and MACD, suggest a positive bias. CLICK HERE FOR DETAILED CHART VIEW

 

Nifty Bank: After conquering the initial resistance of 31,000 levels, the index has headed toward absorbing selling pressure above 31,350. It did climb 31,490 but could not give a strong close. From here on, the index will breakout only above 31,510 levels, which will eventually result in a new lifetime high of 31,800. As the index is honouring the 30,200 mark since the recent reversal, and this should act as short-term support as per the technical chart. The immediate support comes in at 30,700 and 30,900 levels. For now, the trend remains positive and only a close below 30,900 may result in weakness. Banking stocks have been on the investors radar since March 2019 and have helped benchmark indices scale lifetime high levels over the past few weeks.  CLICK HERE FOR DETAILED CHART VIEW

 

Nifty FMCG Index: The index is trading in the range of 31,000 – 28,900 levels. This is a sign of consolidation. However, the current momentum suggests a positive rally towards 30,100 to 30,400 levels. Support comes at 29,200 levels, as shown by technical indicator RSI (Relative Strength Index). CLICK HERE FOR DETAILED CHART VIEW

 

Nifty Auto Index: There is a clear indication of “Falling channel” pattern in the daily chart. The index is slipping consistently with lower lows and a lower bottom formation. Trading below 200-days moving average (DMA) from past one year has dampened the positive sentiment to a great extent. If the index needs to gain strength, then it has to consolidate, stabilise and then can gain momentum. The immediate resistance comes in the range of 8,350 – 8,250.  CLICK HERE FOR DETAILED CHART VIEW

 

Nifty Reality Index: One can see a positive trend on the charts. The index is rising consistently with a higher top, higher bottom formation that is inducing a stronger sentiment. It can hit 310 levels in near-term, which is the upper trendline of a rising rally. As major moving averages - 50 DMA, 100 DMA - have made a positive crossover with 200 DMA making a 'Golden Cross'. This has created buying opportunities around support levels of 270 and 260. Other technical indicators, RSI and MACD (Moving average convergence and divergence) are trading with positive crossover, especially MACD that is stable above zero line. CLICK HERE FOR DETAILED CHART VIEW