Technical Analyst, Prakash Gaba:

We said ‘Technically the market has seen a low at 14180 which is a strong technical support and if the market has to bounce back then the place is just right. We have an F&O expiry coming in and we are just 2 weeks away from the Big Budget. The market could bounce from here and then we could witness a rally into the budget but if the market breaches 14180 then we could see levels in the vicinity of 13500’.

We were expecting a bounce back in this week and later a rally in to the Big Budget week. The bounce back has come in as expected and now the next logical move to expect in this coming week is a Budget rally, logically the market can rally into the previous high of 15600 and possibly our earlier target of 16046 can also be achieved. I would be too happy if the market climbs to a new high crossing the earlier high of 15600 as that will set itself up for a reaction after the budget.

The crucial supports for the Sensex are at 14180 and resistance to the up move is at 15136-15261-16046.

The crucial supports for the Nifty on the way down are at 4200 and resistances on the way up are at 4560.

From a trading point of view I would initiate long positions with a stop below 14180 and exit before Friday next and sit and enjoy the budget on Monday thereafter and then take a call to buy or to sell.