Budget Takes Centre Stage in Domestic Equities Market
This week in the domestic equities market, the focus will be on the budget as it takes centre stage. Experts note that the finance minister’s hint of a low-key, vote-on-account budget suggests a lack of big decisions. However, market participants will be closely watching the budget, as well as other factors such as the US Federal Reserve’s policies, budget, and earnings.
Foreign Institutional Investor Activity Continues to be a Focus Point
Foreign institutional investors (FIIs) continue to be a focus point in the Indian equities market, with significant net sales of over ₹35,000 crore this month. Santosh Meena, Head of Research at Swastika Investmart Ltd, highlights the importance of monitoring FIIs’ activity. In addition, global variables such as changes in US bond yields, the dollar index, crude oil prices, and geopolitical happenings will also have an impact on the market.
Nifty 50 and Sensex See Volatility and Losses
During the previous truncated trading week, the Nifty 50 and Sensex experienced spikes in trading and volatility, resulting in a second straight week of losses. While some sectors showed resilience, weakness in the banking sector led to profit booking and impacted midcap and smallcap stocks. The Nifty 50 ended 0.47% lower at 21,352.60, and the Sensex ended 0.51% lower at 70,319.04.
Wall Street Closes Mixed, Dow Jones Rises
Wall Street closed mixed on Friday, with the S&P 500’s record run coming to an end due to inconsistent corporate earnings and mild inflation statistics. The Dow Jones Industrial Average rose 0.2% to 38,109.43, narrowly missing setting a new high. However, the Nasdaq Composite Index fell 0.4% to 15,455.36, and the S&P 500 fell 0.1% to 4,890.97, ending a four-day record.
Share Market Tips for This Week
Looking ahead, Dharmesh Shah, Assistant Vice President (AVP) at ICICI Securities, expects volatility to remain high in the upcoming eventful week. He advises that the index may consolidate within the broader range of 22,000-20,800 with a positive bias and recommends accumulating quality stocks on dips. Furthermore, Bank Nifty approaching the key support threshold of 200 days EMA indicates a potential pullback that could fuel a pullback rally in the Nifty 50.
Stock Recommendations
Dharmesh Shah recommends two stocks for this week. He suggests buying Reliance Industries Ltd (RIL) in the range of ₹2,680-2,715 for a target of ₹2,850, with a stop loss of ₹2,638. He also suggests buying Steel Authority of India Ltd (SAIL) in the range of ₹114-117.50 for a target of ₹132, with a stop loss of ₹107.
Note: The views and recommendations above are those of individual analysts and experts, not of Mint. Investors are advised to check with certified experts before making any investment decisions.
Analyst comment
Heading 1: Neutral news. The market will be closely watching the budget and other factors like the US Federal Reserve’s policies, budget, and earnings.
Heading 2: Negative news. Foreign institutional investors have had significant net sales. Changes in US bond yields, dollar index, crude oil prices, and geopolitical events will impact the market.
Heading 3: Negative news. Nifty 50 and Sensex experienced volatility and losses. Weakness in the banking sector impacted midcap and smallcap stocks.
Heading 4: Neutral news. Wall Street closed mixed, with the Dow Jones rising and the Nasdaq Composite and S&P 500 falling.
Heading 5: Neutral news. Expect high volatility in the upcoming week. Index may consolidate with a positive bias. Bank Nifty approaching key support threshold indicates a potential rally.
Heading 6: Positive news. Stock recommendations for Reliance Industries Ltd and Steel Authority of India Ltd with target prices and stop loss.
Market analysis: The market will closely watch the budget and other global factors. Volatility is expected, with potential for a rally. Foreign institutional investors’ net sales and weakness in certain sectors may impact market performance. Individual stock recommendations offer potential gains. Overall, the market outlook is cautiously optimistic.
