Coming week union budget we may see volatility in market - Mustafa Nadeem - Epic Research

Nifty ended the week with best gains in last few quarters scaling more than 300 points or 3.5%. Nifty made a long white candlestick patterns breaching the most crucial resistance from 8440 - 8590 and 8640.

A long bullish candlestick pattern does indicate strong bullish momentum in medium term as it has happened after a correction previous week. The pattern indicates short term to medium term bullish movement with current low of candle being pivotal at 8340.

As per the Indicators Nifty is still above its critical moving averages, Short term moving averages crossover also has given a buy signal already. In coming sessions as we head towards an yearly event of union budget we may see volatility to be a critical factor and range play being the course of the time.

As per OI data, The highest concentration is seen at 9000 on higher side to 8400 on downside. 8500 has become the crucial support and line in the sand as it will be a make or break level between bulls and bears. With range play and volatility, we may also see weak hands being squeezed while long term bets should aggressively trail SL's.

A bullish view is seen in Infra, Cement, Fertilizers & Irrigation , Railways and capital goods. Banking stocks may see continued buying momentum as we have seen fresh longs being created.

It is advised for traders and investors to trail / put SL as volatility will be a matter of time.

Source : Equity Bulls

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