Continued momentum buying in the post budget period on the back of no major disappointments, expectations of a rate cut in the next RBI meeting and positive global cues; helped markets notch further gains during the week ended.
Benchmark indices, the Sensex and the Nifty closed 359 points and 100 points higher to close the week at 28241 and 8741 respectively.
BSE Midcap and Small Cap indices outperformed frontline indices reflecting the return of risk appetite among retail investors.
Budget 2017 was a please all statement that lowered taxes and gave a stimulus to key sectors like Housing, Infrastructure, Agriculture, Entrepreneurship and Digital Transactions without compromising on fiscal prudence.
Ahead of the implementation of GST, market watchers expect the Centre to come out with more reforms on the financial front. Better performance of rupee compared to other currencies against Dollar had a positive impact on FIIs.
Medium term direction of the markets will be guided by the outcome of ongoing assembly elections in UP and other states. Key events like RBI meeting on 8th, IIP data on 9th and global cues will dictate the near-term direction of markets.
For the week ahead, chartists predict a trading range of 27650-28850 and 8575-8925 for the benchmark indices. Support for the indices evident at 28000 & 27650 and 8655 & 8550.
