India’s flagship stock Indices – SENSEX and NIFTY fell sharply post the Union Budget 2019-20 speech by FInance Minister, Nirmala Sitharaman. After rallying for the past four sessions, Nifty formed a large bearish candle on the daily chart, which resembles the Bearish Engulfing candlestick pattern. This indicates further weakness is likely.
Going forward, the 50-DMA 11700 is the crucial support area for the Nifty, while on the upside, 11850-11900 zone will act as a crucial resistance. Bank Nifty, on the other hand, formed a spinning top kind of a candlestick pattern on the daily chart indicating uncertainty.
Going forward, fresh selling pressure would get triggered if the 31350 support is broken on a closing basis, while on the upside, resistance is seen around the 31720-31750 zone. Nifty IT index cracked below crucial 100-DMA support zone. It also broke below its previous breakout zone and horizontal trendline support area. Going forward, the long term 200-DMA of 15370 is a vital support zone for the index.