Post Budget session, the sensex ended in red. The sensex ended 152 points lower at 23,000 and. Selling pressure was seen across the sectors. Looks like Market couldn’t digest the budget reports. It is also interesting to note that sensex went into budget with worst monthly performance, since last 7 years. Tomorrow’s opening price action in both nifty and bank nifty will be interesting. Nifty Fell 43 points to close below its radar level of 7,000 at 6,980.
Nifty opened in a calm and quiet mode, and traded in an uncertain consolidation, until things kicked in at 11.10. Large and strong bearish candlesticks started appearing at 11.55, after price action broke the important radar level 7000.00. Upto 12.20, influx of large sell orders were seen until 6850.00. The main reason for such a move is traders were anticipating more bearish sentiment today. Many floor traders and prop firms were thinking about negative expectations from the budget. During news events, it’s quite logical to notice event spike patterns, due to uncertainty and volatility.
Something interesting took place, after nifty touched 6830.00; a large rejection in shadows indicated the strength of buyers, and their conviction to defend the key level. Price action rose until 7080.00 and then went into brief consolidation, after crossing the level. Quite curious to see that market retraced it’s previous losses. One important factor is to notice that, most impulse and liquid movements in nifty takes place just 2 or 3 hours before the market close. The reason for such kind of movements is due to auto trading algorithms and their design mechanisms. Most of these algorithms are designed to start or close positions, just few hours before market closing time.
Nonetheless, budget had lot of negative points; most likely these things will be priced at tomorrow’s session. Traders should watch tomorrow’s market opening price action at key levels 7000.00 to 6975.00.
