Hot Stocks | Bandhan Bank and Infosys are two trading ideas for the Budget month

Nifty ended the week a tad above the 13,600-mark with a massive cut of over five percent on a weekly basis.

It was the biggest weekly drop since September 2020 despite being a truncated week. Nifty wiped off more than 1,100 points in the last six trading sessions.

Although it was intimidating, we were not surprised by this sudden fall because the market had hinted towards it and we continuously highlighted those caveats.

Markets were deeply overbought for many weeks, but the real indication came when we witnessed a ‘3-points negative divergence’ in the RSI-smoothened oscillator on the daily chart in all key indices (Nifty, Bank Nifty and Nifty Midcap 50) after clocking their fresh record highs.

We are considerably off record highs and the way charts are shaped up, it does not bode well for the short-term bulls.

Looking at the weekly timeframe, a close below 5-day EMA along with a shooting star pattern on the monthly chart, the Nifty is possibly headed towards the strong support zone of 20-week EMA and 89-day EMA of 13,200 – 13,000.