NIFTY Index Chart Analysis

ALL EYES ON THE BUDGET

The market has been clueless about any specific direction for the last four weeks or 20 sessions. The prolonged sideways action will generally result in an impulse move in the direction of the breakout. It is waiting for a trigger point, which is the Union Budget. Historically, in 14 out of 22 years, the pre-existing trend has reversed postbudget. At the same time, pre-budget months have a positive to a neutral bias, whereas post-budget months have a negative bias. On only seven occasions in the last 26 budget sessions (including ‘vote on account’ budgets), the index moved over 1 per cent to 4 per cent). Even in the 2020 historical fall, the budget acted as a trigger point to it. Let us wait for the triggers this time, and we will go according to direction.