Sensex, Nifty, Bank Nifty: How to trade Indian market ahead of Budget 2022?

The Sensex and Nifty can gain 2 per cent, while Auto and Realty indices seem poised for higher gains

With just coupled trading sessions remaining for the Union Budget 2022-23, here's a quick chart check on how the key indices are poised.

S&P BSE SENSEX

Likely target: 59,000

Upside potential: 2%

The BSE benchmark firmly held 57,000 on a closing basis, while the intraday sessions witnessed reversals near 56,400-odd levels. In the future, as long as these supports are protected and the index does not fall with aggressive sentiment, the bullish bias is anticipated to regain the positive rally. The immediate resistance comes to 59,000 level.  CLICK HERE FOR THE CHART

 

NIFTY50

Likely target: 17,700

Upside potential:  2%

While the Nifty 50 slipped near 16,800 levels in the past two intraday sessions, it managed to close above the sentimental mark of 17,000. This strength and momentum needs to fuel more participation that could overcome the next resistance of 17,700 levels. The immediate support comes at 17,100 and 17,000 levels.  CLICK HERE FOR THE CHART

NIFTYBANK

Outlook: Inverse Head and Shoulder breakout at 39,000

If this index conquers 39,000 levels, it could result in a formation of “Inverse Head and Shoulder”, a bullish pattern that exhibits a positive rally ahead. The medium-term support stays at 35,500 levels, with immediate support at 37,000 and 36,400 levels. The 200-day moving average (DMA) is positioned at 36,100 levels. CLICK HERE FOR THE CHART

 

NIFTY AUTO INDEX

Likely target: 12,150

Upside potential:  3.50%

 

The recent weakness has tested the support of 11,100 levels as the index recovered sharply after dropping below it. The positive bias may claim a new all-time high crossing 12,139 level. The immediate support comes at 11,400 and 11,100 levels. The overall trend looks promising until the respective support levels are protected. CLICK HERE FOR THE CHART

NIFTY IT INDEX

Outlook: Needs to hold 200-DMA

The Nifty IT index violated the most respectful support of 100-DMA, which it held since mid-2020. The breach of a support that was protected over a one and half year has adverse impact on the positive sentiment.  The current 100-DMA stands at 36,160 level. Now the next support falls at 32,500, its 200-DMA and if the index dishonours this mark, then the medium-term outlook could see bearish sentiment.  CLICK HERE FOR THE CHART

NIFTY FMCG INDEX

Outlook: The outlook remains cautious

The index is on the verge of forming a negative crossover called “Death Cross” of prominent moving averages i.e 50-DMA and 200-DMA. If this happens, then FMCG index may fall in a big negative territory. As of now, the outlook remains cautious and the key level needs to be closely monitored for further direction. The index requires to overcome 200-DMA resistance, currently placed at 37,300 levels. CLICK HERE FOR THE CHART

NIFTY REALTY INDEX

Likely target: 500

Upside potential:  5%

The index has a breakdown-neckline mark at 440 levels, a bearish signal displayed by “Head and Shoulder” formation, as per the daily chart. So, until this neckline is protected, the index may regain the positive bias. The immediate resistance is set at 500 levels. Also, the support comes at 460 levels. CLICK HERE FOR THE CHART