Greetings traders, As this week is about to be more volatile in the event of union budget combined with the railway budget. Therefore, lets have a grasp on NIFTY pre-budget analysis that includes the basic & technical analysis of NIFTY in terms of fundamental factors & Elliott wave Principle respectively.
NIFTY PRE-BUDGET ANALYSIS - Fundamentals
Having expectations that this budget will definitely be a reformer - let's leave that to your judgement & upcoming future events! but that doesn't mean that the dent will be entirely covered.
Its no doubt that the recent moves by the government has disturbed the economy of the country in measurable scale - be it small/ large & short/long. However, the revenues to the government for the year 2016 has set low tone due to all the fallback events & hence, we see this budget to be neutral irrespective of individual sectoral benefits! & cover-up activities.
Railway budget could be up to expectations.
NIFTY PRE-BUDGET ANALYSIS - TECHNICALS
Everything expected have been said & done, we have the data to deal with the technical section based on Elliott wave principle
The Analysis above states that the X wave in the primary degree (the circled one) is about to complete and after that the new primary wave Y will be a continuation to that.
The completion of X wave is expected to be in the vicinity of 78.6% level or at the 8736-8805 areas. Due to overwhelmed volatility tomorrow, the levels can be surpassed to some extent (but not anything above 8966 levels). if the 8966 levels are breached then this analysis have to be revised.
SO WHAT TO EXPECT TOMORROW?
Well, that's a straight forward question. Having a long position can gracefully be a brilliant opinion till the above mentioned levels and after that the trend is projected to be bearish to a great extent & moreover tomorrow's close might drag nifty to new low in short-term.
There are no further changes to any of our previous analysis expect the primary wave W being marked as complete.
*Be sure to keep an eye on stop-loss levels (not too tight) & margins (high volatility concerns).
We will shortly publish a post budget analysis after the union budget & the same will act as monthly analysis for FEBRUARY.
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