Hello Traders,
I hope this message finds you well. I am pleased to share an insightful analysis with you, which illuminates the continuation of the market shift in accordance with the budget.
Preliminary Analysis Overview:
The correction initiated on September 27, 2024, comprises three phases and bottomed out at 22,786 on January 27, 2025 (~120D). Given the recent decline, it is considered a correction within a correction, and we anticipate a retracement to higher levels before resuming the trend in a more significant manner.
Phase I:
Following a brief rally in the pre-open and open periods, the market is expected to decline towards lower levels between 9.15 - 11 AM to the following levels.
SI: 23,300
SII: 23,140 (Stronger)
SIII: 23,041 (Potentially for extension to 23,000)
*Please note that these values are indicative and not actual.
Phase II:
Following the completion of the internal correction, the market is anticipated to resume its current interim upward trend in a more significant manner to test the 38.2 R 24,120 levels) + static support.
R I – 23,950
RII – 24,120 ~ 24,225
*These values are not actual but merely levels.
**Budget commentary that I expect: **
1. There will not be any change in corporate tax rate.
2. Personal IT may see a small slab change, accompanied by an increase in standard deduction.
3. No changes to STT, LTCG / STCG (revision(s) will undermine the integrity of the decisions from FM).
4. Reduced borrowing costs accommodating leveraged capex.
5. Incentivization (PLI, infra, agricultural & make in india).
6. Semi conductor push.
**Important Note:**
This entire analysis holds true only until the market breaks 22,786.90, although I believe not today.
** Final Verdict: **
The current uptrend is considered interim. The primary trend remains downward and is anticipated to persist further and deeper. This trend is expected to test the 38.2% support level coinciding with the 22,146 ~ 21,245 -support level.
**Strategy:**
Given the implied volatility increase, it is prudent to adapt to changes as they appear to transpire.
1. Sell until phase I.
2. Buy for phase II (Conservatives may await some confirmation with strict SL @ 22,786).
3. Exit any open position after phase II completion and await cues.
Fellow Traders,
The creation of this valuable analytical resource has necessitated countless hours of dedication and effort. If you find it useful, I humbly request your support by promoting the idea and following me (updates will be provided via this post, new posts, and through minds). Your comments and thoughts on this idea are highly valued, and I am committed to engaging with each one personally.
Disclaimer:
Before concluding, I must emphasize that the insights shared are based on my analysis. It is imperative that you conduct your own research and, if necessary, consult with a financial advisor before making any trading decisions. The dynamic nature of financial markets necessitates that your strategies align with your financial objectives and risk tolerance.
I hope this message finds you well. I am pleased to share an insightful analysis with you, which illuminates the continuation of the market shift in accordance with the budget.
Preliminary Analysis Overview:
The correction initiated on September 27, 2024, comprises three phases and bottomed out at 22,786 on January 27, 2025 (~120D). Given the recent decline, it is considered a correction within a correction, and we anticipate a retracement to higher levels before resuming the trend in a more significant manner.
The analysis is supported by the fact that a crucial time resistance for the down trend lies at 17 February 2025, where the market is anticipated to conclude the ongoing correction phase and initiate a new trend.
Phase I:
Following a brief rally in the pre-open and open periods, the market is expected to decline towards lower levels between 9.15 - 11 AM to the following levels.
SI: 23,300
SII: 23,140 (Stronger)
SIII: 23,041 (Potentially for extension to 23,000)
*Please note that these values are indicative and not actual.
Phase II:
Following the completion of the internal correction, the market is anticipated to resume its current interim upward trend in a more significant manner to test the 38.2 R 24,120 levels) + static support.
R I – 23,950
RII – 24,120 ~ 24,225
*These values are not actual but merely levels.
**Budget commentary that I expect: **
1. There will not be any change in corporate tax rate.
2. Personal IT may see a small slab change, accompanied by an increase in standard deduction.
3. No changes to STT, LTCG / STCG (revision(s) will undermine the integrity of the decisions from FM).
4. Reduced borrowing costs accommodating leveraged capex.
5. Incentivization (PLI, infra, agricultural & make in india).
6. Semi conductor push.
Overall, I am expecting a neutral budget – Neither hawkish nor dovish.
The markets will do what they have to….!!!
**Important Note:**
This entire analysis holds true only until the market breaks 22,786.90, although I believe not today.
** Final Verdict: **
The current uptrend is considered interim. The primary trend remains downward and is anticipated to persist further and deeper. This trend is expected to test the 38.2% support level coinciding with the 22,146 ~ 21,245 -support level.
**Strategy:**
Given the implied volatility increase, it is prudent to adapt to changes as they appear to transpire.
1. Sell until phase I.
2. Buy for phase II (Conservatives may await some confirmation with strict SL @ 22,786).
3. Exit any open position after phase II completion and await cues.
Fellow Traders,
The creation of this valuable analytical resource has necessitated countless hours of dedication and effort. If you find it useful, I humbly request your support by promoting the idea and following me (updates will be provided via this post, new posts, and through minds). Your comments and thoughts on this idea are highly valued, and I am committed to engaging with each one personally.
Thank you for investing your time in reading this article.
Wishing you profitable and fulfilling trading endeavors!
Disclaimer:
Before concluding, I must emphasize that the insights shared are based on my analysis. It is imperative that you conduct your own research and, if necessary, consult with a financial advisor before making any trading decisions. The dynamic nature of financial markets necessitates that your strategies align with your financial objectives and risk tolerance.
Note
I also believe that for the past budget(interim), buy side was the trap & for this budget, it may be sell side.Trade active
The beginning of phase I is yet to start & the volatility is really picking up One thing to be cautious is that we cannot account for the magnitude of the remaining upward move before phase I
Wait & proceed accordingly!!!
Note
Market can inch higher, wait before any shorting or for being in the safer side better go with Long onlyNote
[IMPORTANT]Given the restrictions of time available, i.e only 11 trading days to FEB17, i'm revising my analysis,
The market can directly plunge without phase 2, that the phase 1 itself can sink the markets to the depths of 22,000
Trade closed manually
Today, RBI MPC @ 10. Whatever the decision RBI takes, the market is expected to plunge for the coming week irrespective of today's movement(be it a small upward move or continued down trend).
Best Regards,
WDG_Dinesh_Gengarajan
Full-Time Analyst, Trader & Trainer
For learning, visit Wiz-Brains Online Trading Academy
Unlock free courses and face the markets with confidence! @ wiz.leadbrains.com
WDG_Dinesh_Gengarajan
Full-Time Analyst, Trader & Trainer
For learning, visit Wiz-Brains Online Trading Academy
Unlock free courses and face the markets with confidence! @ wiz.leadbrains.com
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Best Regards,
WDG_Dinesh_Gengarajan
Full-Time Analyst, Trader & Trainer
For learning, visit Wiz-Brains Online Trading Academy
Unlock free courses and face the markets with confidence! @ wiz.leadbrains.com
WDG_Dinesh_Gengarajan
Full-Time Analyst, Trader & Trainer
For learning, visit Wiz-Brains Online Trading Academy
Unlock free courses and face the markets with confidence! @ wiz.leadbrains.com
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.