The level of 7500 has proved to be a rock solid support base for Nifty yet again, as the indices refused to breach the support on the budget day and rebounded sharply on short covering. The short positions created earlier had no option but to cover them on a reasonably market friendly budget.
Nifty is showing signs of divergence on the short term charts and may move sideways from hereon to complete a sideways correction. The long term trend continues to be bullish with a brief pause till the budget is fully digested. Any new policy announcements may be a new trigger for the market to resume its upward journey.
