MARKET OUTLOOK
Market continues to be lackluster as participants are waiting for a key event to be over. Budget may
or may not have any impact on the market in the medium to long term but short-term gyrations post
budget are almost a certainty. That’s the reason why markets have gone so quiet before Budget.
Moreover, even the global cues are not strong enough to cause any upheaval or change in
sentiments. So, Nifty continues to drift aimlessly with a slight downward bias. Higher levels are
inviting some intra day selling in weaker heavyweights like RIL, SBI and others. Steel counters are
showing some positive bias but moves are not convincing enough to take even an overnight call.
Even the stock specific buildup is missing this time as market is approaching Budget with almost nil
expectations. Railway related counters did not witness any movement and that is a strong indicator
of lack of interest or anticipation. We would like to reiterate the fact that it isn’t worth to anticipate
post Budget movement. It would be better to take a call post Budget. Meanwhile Nifty has
immediate support around 4820 while resistance is likely around 4910-20.
Nifty moves into narrow trading range
Slowly, the Index has moved inside a range which is between 4800 and 4930 approximately. This
small range is a part of the larger trading zone between 4700 and 4930. What seems to have
happened is a shift in the lower end of the range, from 4700 to 4800.
A 125 point range in the NIFTY is NOT likely to last long. The market will move one way or the
other.
Will the coming union budget be a game changer?
This is any body's guess. What we should do is to watch the trading range levels, and go with the
market. A move above 4930 is a buying opportunity, while below 4800 remains a sell.
Support for the Nifty is seen around 4800, Resistance for the Nifty is seen around 4930