STOCK MARKET: BUDGET COMES WITH SELL SIGN?

STOCK MARKET: BUDGET Day COMES WITH SELL SIGN? LET'S CHECK IT...

POSTED BY NILESH WAGHELA 

MUMBAI: The Indian benchmark indices ended lower for the second consecutive session on July 22 amid selling in heavyweights as traders were cautious a day ahead of Union Budget announcements.

At close, the Sensex was down 79.43 points or 0.10 percent at 80,525.22, and the Nifty was down 21.60 points or 0.09 percent at 24,509.30.

Now let's see what technical expert predict for budget day. 

Expert says, Considering the Union Budget outcome, wild swings can be expected on both sides where 24,200 will be considered as immediate support while the higher side seems to be capped at 24,800.

The Union Budget presentation on July 23 will likely create enough intra day volatility. Nifty could face resistance at 24661 and later at 24801 in the near term while 24141 could provide support on falls.

Nifty indicators show a sell signal, and high level of volatility may be observed on budget day, expert opined. 

Top technical expert says, Nifty ended Monday's trading session 22 points lower near the 20,500-level ahead as traders adopted a cautious approach ahead of the presentation of the Union Budget on Tuesday.

The daily and hourly momentum indicator has a negative crossover which is a sell signal. 

Crucial support levels to be kept handy are 24265 (20-day moving average) and 24000 (23.6% Fibonacci retracement level. On the upside, a breakout above 24860 can lead to a rise towards 25530, Jatin Gedia of Sharekhan said.

Given the budget announcement, volatility is expected to be high in Tuesday’s session.

Open Interest (OI) data indicated that the highest OI on the call side was observed at 24,800 and 25,000 strike prices, while on the put side, it was at 24,000 strike price.