Strong support for Nifty at 3070: Gaba

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Technical Analyst, Prakash Gaba:

We said 'We have a big event the BIG BUDGET on Monday the 6th and we have no idea what the Finance Minister has in store for us and come what may technically the short-term trend is still intact UP. But as the market climbs higher it is likely to find stiff resistance at our original target of 16046 and if that happens then the market sets itself up for a reaction. I would like to watch the crucial support of 14355 the break of which will first signal weakness'.

The budget event occurred, the market opened and climbed higher and sold off after breaching our crucial support of 14355 and cracked and thus registering the biggest weekly fall in 8 months.

Technically the market now is in a sell mode and any up moves that we may wittiness is more likely to be reactions to this down move until a strong support merges. Technically we may see some violent reaction and stops may get triggered but the down move continues.

A strong support for the Sensex exists at 12715 and resistance to the up move is at 14000.

A strong support for the Nifty exists at 3070 and resistance to the up move is at 4140.

From a trading point of view I would short all rallies until a strong support materializes.