Indian equity market, which was eyeing all time high levels in the first half of January amid rising Omicron cases across the globe, has turned volatile days ahead of the Union Budget 2022. Sensex which closed at 61,308 on January 17 stands at 56,718 today, down 4,590 points in just seven sessions. Nifty has lost 1,377 points to 16,931 compared to the closing of 18,308 on January 17.
Before the market crash, the 30-stock index looked set to scale all time high of 62,245 as the market rally ignored rising number of coronavirus cases across the world.
However, with the spectre of interest rates hike looming large over the US economy, global markets tanked taking into account the shrinking of liquidity the Federal Reserve in the near future. Amid the ongoing correction in Indian indices sparked by a crash in their global peers, investors who pumped money into the market are looking for the possible direction of market ahead of the Union Budget 2022.
Stock Market LIVE: Sensex tanks 1000 pts, Nifty below 17k; Titan slips 4%
The Budget which will be presented on February 1 is expected to unveil measures to bring the economy out of the effect of ongoing pandemic.
This could prove to be a lifeline for the Indian market which has corrected in line with global peers.
Also read: Investors stay bullish even as benchmarks plunge
Here's a look at how experts expect the market to move ahead of the finance minister Nirmala Sitharaman's fourth Budget speech.
Parth Nyati, Founder, Tradingo said, "The market is not going in the budget with any euphoria. So, there is a good chance of a post-budget rally and if we look at the last three years' trend then the market corrects ahead of budget then it witnesses a post-budget rally. Nifty is trying to find its feet near a strong support zone of 16850-16600 after a brutal fall. The market was looking much oversold as PCR was slipped below the 0.7 mark and FIIs' long exposure in the index future dipped below 45% therefore a bounceback is due. Technically, 16800 is long-term trendline support and a previous demand zone while 200-DMA is placed around 16600 level therefore we can expect a pullback rally from here. On the upside, the 17500-17600 area will be the first resistance zone while above 17800, we will get confidence that the market has reversed and is ready to go higher."
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities said, "If the Nifty manages to trade above 17050, a pullback rally could be on the cards and can move further up to 17300-17450 levels. On the flip side, dismissal of 17050 could trigger one more leg of correction up to 16900-16800."
Prashant Tapse, Vice President (Research) at Mehta Equities said, "Technically, Nifty's daily charts are still painting a bearish picture; downside risk seen at 16,401 mark and then aggressive targets at 16,001. The technical landscape will improve considerably only above Nifty 17777 mark. We suspect bears will remain in full control as the pessimistic theme at Dalal Street is also surrounded on anticipation of a populist budget ahead of 5 state elections. Massive profit booking will continue to be the preferred theme in near term and nevertheless, any 'risk-on' move."