NEW DELHI: As the Union Budget unfolded on Wednesday, the Nifty50 saw its biggest Budget-day gains since 2005 to settle above 8,700 for the first time since October 24, 2016. (See chart)“The Nifty50 has surpassed a major event and now the big trigger would be RBI’s policy review scheduled for next week. As long as the index does not break any immediate support zone, traders can continue with the stock-specific positions as many stocks are forming positive price patterns,” said Chandan Taparia, Derivatives Analyst for Equity Research at Anand Rathi Share & Stock Brokers.Taparia sees immediate downside for the Nifty50 at 8,580. If this level is breached, the index can test the 8,550 and then 8,535 levels, he said.Mazhar Mohammad, Chief Strategist for Technical Research & Trading Advisory at Chartviewindia.in, said the real strength of the upward move would be revealed only with follow-up buying in the next few sessions.That said, “Traders can create/hold long positions for time being as long as the Nifty50 sustains above the 8,537 level for an initial target of 8,753. If the Nifty50 manages to clear the 8,753 level, then much bigger targets can be expected,” Mohammad said.

Source: Economic Times February 01, 2017 11:20 UTC