What a roller coaster ride on Saturday the Union Budget special session. It was a session of euphoria, panic & stress for many and in the mean time it was a day of joy for few.The market on event day witnessed sharp whipsaws in nifty and banknifty all day before finally making a close at 8964.65.
Week starting from Monday 23 Feb,2015 is going to be an event driven week for indian stock market since we are going to have the Budget from Modi Government and all the expectations, surprises & speculations of whats going to happen with regards to the policies or laws or rebates will come to an end after the whole budget is out and open before the market players and public.
Banknifty future from chart above looks like making a head and shoulder formation which is in its last leg of forming the right shoulder (which it should, to become a valid pattern). As per the chart above 19450 is tough line of resistance for bulls only once this level is sustained close basis the next up leg shall begin, till that the bank nifty is sell on rally and around 19000 there is a strong support from where it becomes a buy towards this resistance again.
Nifty Future has had seven consecutive down close days followed by a uptrend and short term trend is definitely down. The major support area is now at 8550. This is 50% retracement level from the previous lows of the trend as same can be seen from chart above.