For the second consecutive week, the domestic market has been trading under pressure amid weak global cues.
Nifty ended in the red for most of the trading sessions this week and at this juncture, it is trading with a cut of 1.73 percent and has almost retested 12,000-mark, whereas Nifty Bank index has lost 1.90 percent so far during the week.
Until the previous week, we expected a bounce in the market towards 12,300–12,400. However, the selling pressure aggravated at higher levels and Nifty took a U-turn from the high of 12,272.
Now at this point, Nifty is hovering above the psychological support of 12,000. A breach of this mark might drag the index towards the previous important swing low of 11,930.
If there is any positive surprise from the Union Budget, there could be a bounce towards 12,300–12,500. However, we still advise traders to use the bounce as an exit opportunity since we are witnessing a negative divergence in the monthly chart of Nifty.