Will bulls make a comeback post Budget after last week’s carnage? Anand James decodes history

“Friday’s turn of events presents an opportunity in the near-term though. Firstly, we have slipped over 1400 points from the record peak and are at a 3 Standard Deviation (SD) boundary, which suggests that an end to downtrend is nearing. Secondly Nifty PCR (put call ratio) is at 0.67 after Friday’s carnage, and incidentally, the last time we had negative close and sub 1 PCR ahead of Budget, we saw a 4% gain in the 3 days post budget.”