The weekly change in the indices gives no hint of the volatile swings we saw in the week gone by. And this has been the pattern over the last 5 weeks - huge swings & newer highs, but moderate closings on a weekly basis.
Going forward into F&O Expiry + Budget Week, the markets will continue to face immense headwinds / selling pressure at every rise.
Rarely has any Budget enthused the markets immediately and after almost all Budgets, the markets have tanked - no matter how Good/Bad or Mediocre the Budget was.
Why should this year be any different?
Use any rise/rally to build INDEX aggressive shorts in the run-up to the budget. (Off-course, all short positions have to be inline with your MTM capacity).
My bearish outlook will remain in place as long as the markets trade below 41700/12275 and will be negated with a sustained close above 41985/12357.
| Index Levels | ||
| Date | 27-Jan-20 | |
| Index | Sensex | Nifty |
| S2 | 41,486 | 12,211 |
| S1 | 41,538 | 12,226 |
| Previous Close | 41,613.19 | 12,248.25 |
| R1 | 41,630 | 12,253 |
| R2 | 41,653 | 12,260 |
| Fair Value | 34,012 | 10,011 |
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