Indian equity markets ended up for second consecutive week claiming the 8700 mark after 3 months. Nifty post a bullish long candlestick gave a close above 8700 mark though the gains were smaller as compared to previous week but volatility  ​was there as market gave thumbs up to union budget by extending the monthly gains as well for second consecutive month. On basis of averages, Nifty is now above its all short term Moving averages such as 20- 50 – 100 – 200 DMA suggesting short term bull market to be intact and buy on dips is still the due course of time strategy. As per OI data we have seen long build up at 8700 – 8900 CE coupled with shift in lower range from 8400  to 8500- 8600. It does suggest that any dips in market will be buying opportunity.

Supports are at 8640 – 8610 – 8560 while resistance is now seen at  8810 – 8900 on the higher side. the mentioned levels needs to be taken out with closing basis to make sure the trend continues though short term correction are part of longer trend and should be utilized. Despite just 10000 CR being allotted to banks in Budget they have lead the rally and bank Nifty may continue to do so towards 20500 – 20700. Metals is another space that is seeing buying momentum and Nifty Metal may see further bullish momentum.

Though a bit of profit booking in international commodities may trigger short term profit booking.  Stocks specifically related to LNG and gas will see bullish momentum while IT may drag due to Trump’s hard policy measures affecting the sector which is already facing margin pressures.