Interim budget: How to trade Nifty if volatility remains high

Benchmark indices are trading in a narrow range with positive bias ahead of Interim Budget 2014.

Finance Minister P Chidambaram will present the Vote on Account or Interim Budget for the first four months. The objective of a Vote on Account is to get Parliament's nod for expenditure to be incurred in the months prior to elections.

The Sensex was higher by 64 points at 20,431 mark and the Nifty gained by 16 points at 6,064 levels.

Market is likely to witness some volatility this week on various factors this week. The most important of which is the vote-on-account or interim budget on Monday. Kunal Bothra-Technical Analyst at LKP Securities suggests investors to build long positions in Nifty if it breaks 6080 levels.

Nifty is trading around 6060 levels ahead of the vote-on-account. What is your take on benchmarks . Is Nifty likely to break 6150 level today?

Nifty is in a trading range of 5980 (200 Day Moving average) and 6080. This range has now become a crucial range for the market. However, we believe that a break could very likely happen this week from this range. If 6080 breaks then 6150 could be a possible short term target on Nifty in a couple of days from the breakout.

Should investors go long on Nifty this week? What should be the strategy given volatility is likely to remain high

We believe if 6080 level breaks on Nifty, then traders should look at building long positions in Nifty, till that time, it could continue to be rangebound market.

What are your top trading strategies for short-term trading gains?

Rec has formed a short term bullish flag formation, with a breakout above 191. From a short term view, traders could buy that for a target 202 stop loss at 187.

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