Budget day may see stock market swing in 4% range
Subscribe to enjoy similar stories. Retail investors, high net worth individuals (HNIs) and proprietary traders have created derivatives positions that indicate that the stock markets could move within a 4% range on Saturday, when Union finance minister Nirmala Sitharaman presents the Budget for fiscal year 2025-26. The positions were created on a day the markets rose for the fourth straight session.
On Friday, the Nifty50 settled 1.11% higher at 23,508.4 points while the Sensex ended 0.97% higher at 77,500.57. Also Read | Budget 2025: 3 key expectations by Pharma leaders to boost CDMO busines Broader markets like the Nifty Midcap 150 and the Nifty Smallcap 250 outperformed, rising 1.7% each amid optimism that Sitharaman would announce some form of stimulus or tax breaks for low and middle-income taxpayers who have been singed by poor wage growth and high inflation. Markets will also keep a close watch on announcements to boost economic growth, which at an estimated 6.4% for the current fiscal is much slower than 8.2% in FY24.
If the markets move per the positions created by these investors and traders, the Nifty and Sensex could test their 200-day simple moving averages (SMA), which they trade below currently. Also Read | Key Nifty 50 levels, trading strategy, sectors to watch out for on Budget day Nifty 200 DMA was at 23,998.85 and Sensex was at 78,881 as of Friday, per Bloomberg. On the flip side, markets could also slip 2% from Friday's closing in case the budget disappoints.
Read more on livemint.com
