Pre-Budget rally possible! Sensex, Nifty may hit new highs, charts suggest

As long as the underneath trend is bullish, volatility and minor dips shall be seen as opportunities to go long

With less than a fornight remaining for the announcement of the Union Budget for fiscal year 2022-23, here's what the charts indicate for the key benchmark indices in the run-up to the mega financial event on 01 February, 2022.

S&P BSE SENSEX

Likely target: 62,500 to 63,000

Upside potential: 2.50% to 3%

The BSE Sensex has conquered the major resistance of 60,800 and managed to sustain above the same mark. This small sideways movement suggests a possible breakout above the immediate resistance of 61,600 and when that happens, one can expect a sharp surge in the direction of 62, 500 to 63,000 levels. The overall trend is poised for the next upside as per the candlestick patterns on the daily chart. CLICK HERE FOR THE CHART

 

NIFTY50

Likely target: 18,700 to 18,900

Upside potential:  3% to 4%

The breakout above 18,100 indicates a bullish momentum in the run-up towards the Budget 2022. Although, one can see minor hurdles on the upside that could slower down the positive speed and momentum, but the underneath strength continues to stay highly strong.  In the coming trading sessions, an up move above 18,400 may see a sharp upside towards a new all-time high of 18,700 to 18,900 levels, according to the daily chart. CLICK HERE FOR THE CHART

NIFTYBANK

Likely target: 40,200

Upside potential: 5%

The index succeeded in conquering the selling pressure range of 38,000 to 37,000 levels with strong volumes. This up move signals a positive bias for the coming months. The immediate support comes at 37,500 levels, which is the 100-day moving average (DMA). The overall trend is heading towards 40,200 levels, its next crucial resistance.  CLICK HERE FOR THE CHART