Supported by Q3 results, positive global cues, continued buying from DIIs and FIIs and macro factors, the markets recorded its longest winning streak since 2010 to close on positive note for eighth week in a row.
The Sensex rose 539 points to settle at 36,050, while Nifty rose 175 points to settle at 11,069.
However, the market breadth was positive in only one out of the four trading sessions of the week reflecting caution ahead of the Budget.
Note ban has given push for investments into the nation’s stock market. Key indices have gained about 45 per cent since the end of 2016, one of the best performances among more than 100 global indexes.
Old timers feel that it is creating a big funnel of money coming from domestic savers into a small pipe of stocks. Be cautious on the small and mid-cap sectors which have the risk of getting a little bubbly.
Rising discontent in rural areas may pressure Arun Jaitley to announce significant fiscal measures that could win back villagers.
Going by past track, governments that choose in their last full-budget to focus on urban issues have rarely met success at the ballot box. Expect the budget to mark a shift to issues relevant to farmers.
Analysts expect push for more farm insurance, expand cold storage and improve logistics from production to marketing.
FM’s statement that the country’s economic growth is not “justifiable and equitable” and that the agriculture sector will be the government’s top priority is a pointer for the contours of budget.
For the week ahead, chartists predict trading range of 35,550-36,600 and 10,875-11,250 for the benchmark indices. Support evident at 35,800 & 35,550 and 10,975 & 10,885.
