Avoid large trades before Union Budget

Despite sharp sell off on Friday on the back of corporate espionage scandal, supported by lower inflation numbers and expectations over the Union Budget, the Indian markets logged marginal gains during the week ended.

Benchmark indices, the Sensex and the Nifty closed 137 points and 27 points higher at 29,231 and 8,834. Heightened activity was seen in midcap segment with the participation of ‘punter’ counters like Suzlon Energy, Pipavav Defence and others. Focus of the market players is on the upcoming budget session of parliament.

All eyes are on the government efforts to push the eight ordinances that have been issued. Expectations are that the Union finance minister Arun Jaitley will address issues like transfer pricing, fiscal deficit and others in the Union Budget which will attract the attention of foreign institutional investors (FIIs).

Analysts expect the Union Budget to give big push to infrastructure and manufacturing sectors. Despite all attention on the Union Budget, with global issues like Greece, currency movements and crude oil prices swinging the markets, investors would do well to track global cues also. For the week ahead chartists predict trading range of 28,750-29,750 for the Sensex and 8,675-8,975 for the Nifty.

Immediate supports for the indices are at 29,000 and 28,775 and 8,755 and 8,680. It is better to avoid large trades before the Union Budget say experienced traders.