Budget impact, RBI policy among 8 factors will shape the market direction this week
Budget on Saturday as investors saw little coming in from the Finance Minister Nirmala Sitharaman. The benchmark Nifty slipped by a marginal 26 points at 23,318, while Sensex eked out a 5-point gain.
Analysts say the underlying trend of Nifty remains positive and the market is facing stiff resistance around 23,500-23,600 levels. «A decisive move above this hurdle could open further upside towards 24,000 levels in the near term. Immediate support is placed at 23,300 levels,» said Nagaraj Shetti of HDFC Securities.
Key factors that will shape the market direction this week:
1) Budget reaction
Even though the markets closed flat, the impact of Budget announcements will still be there during the week. Analysts say this will play out in sectoral and stock specific action. By doing away with tax on income up to Rs 12 lakh under the new tax regime, the government is looking to give a bump to consumption, which will be positive for FMCG, auto and few other sectors.
«FIIs participation was very minimal. Hence, the actual reaction is likely to be witnessed on Monday and hence, we need to wait for a day or two to understand whether the market has really discounted the Budget factor or not,» said Osho Krishnan, Sr. Analyst, Technical & Derivatives of — Angel One.
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