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Trend Remains Weakly Bullish. Budget Unlikely To Be A Breakout Event

Strong support levels are seen at 11,550 levels, and a drop below this number appears unlikely in the current retracement wave.

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In tandem with Asian markets, the NIFTY gained in the pre-market session early trading Monday, after the U.S. and China over the weekend agreed to a timeout in their tariff war and agreed to resume trade negotiations.  

For now, all eyes are on the first full fledged budget from NDA 2.0 and Nirmala Sitharaman. We’re quite likely to witness a populist budget, with farmers and micro industries being the focal areas – hence, the chances of an event-led breakout post the budget announcements remain slim, at best.

On the technical front, the NIFTY appears to be entering some sort of squeeze on the daily charts, while the broad trend on the weekly charts remains weakly bullish. The momentum retracement that began in the first second week of June continues, with the index not looking likely to recapture its 12K+ peak anytime soon. 

Strong support levels are seen at 11,550 levels, and a drop below this number appears unlikely in the current retracement wave.

The prognosis continues to be ‘range bound with an upward bias’, with the index likely to oscillate frustratingly between the 11,550 and 12,100 marks.

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