Indian equity markets are trading within a range with intraday volatility running high. Global cues are supportive, but we are not reactive to them. Nifty has an immediate resistance zone at 18,200–18,250, while the base has shifted into the 18,000–17,950 zone.
The volatility index, India VIX, is still below the 14 mark, but it is likely to pick up ahead of the Budget. The range is narrowing, but the market can't remain in range for a long time, and we can expect a breakout or breakdown in the coming days where budget will be a key domestic event.
On the upside, if Nifty takes out 18,250 level, then 18,500 and 18,650 will be the next target levels. On the downside, if index slips below 17,950 level, then 17,750 is a sacrosanct support level.
Bank Nifty is also trading rangebound, where 43,000 is an immediate psychological hurdle and 43,500 and 44,000 are the next target levels. On the downside, the 20-DMA of 42,600 is an immediate support level, and 42,000–41,725 is the next support zone.