MARKET OUTLOOK
NIFTY has formed a Doji. 4910-4940 region is the strong resistance zone. Tested and closed below
the bearish flag. Downside trigger level is 4870. Forming an inverted H&S with neckline at 4950.
For Tuesday, Support - 4902 / 4880 and Resistance - 4960 / 5010.
The Finance Minister Goes Back in the Past
On Friday, the union budget was something of a damp squib. The Markets liked it when it was being
announced -Nifty went up to an intra day high of 4992. Then, traders started understanding the fine print of
the budget, and the Nifty fell to a low of 4913 before recovering a bit to end the day at 4925.85.
Well, in an uncertain market, the decision on trend could really be on either side. The Nifty needs to close
above 4930 to tell us that the Index is breaking on the upside. Between 4930 and 4830, we remain in a
trading range. Below, 4830, the current down move is resumed.
Sectors to Watch
Information Technology
In IT, most mid cap stocks are looking weak on charts, while the large cap stocks are suggesting a range.
But, it is possible to be stock specific. 3i Infotech is offering a buy, while TechMahindra is suggesting a sell.
SUGAR
Sugar has seen a big decline. Renuka appears to be a long term bet, with the possibility of gains due to its
Brazilian acquisition. On the charts, it is oversold. Consider buying. If you are a trader, keep a stop below
155. If you are an investor, buy in small lots, and, add if prices touch 130 or closeby.