The rally in equities was dented by US bond yields and rising oil prices. But, technical set-up for the Sensex & Nifty point at a pre-Budget rally. Find out the trading strategies ahead of the Budget
With the Union Budget presentation just a fortnight away, equity investors have decided to sit on the fence.
Yesterday, the
BSE Sensex ended at 60,755, down 554 points, while the
Nifty50 shut shop at 18,113, down 195 points. With this, the frontline indices have fallen in 2 out of last 4 trading sessions, slipping over half a per cent during the period.
Historically, markets have turned volatile ahead of the Budget presentation, although the trend, mostly, has been on the upside.
An analysis by Anand Rathi Shares and Stock Brokers throws light on the same. Data since 2010 reveals that equity markets surged up to 5.6% in the month preceding the Budget and 1.3% a week prior to the D-Day. On the downside, they fell a maximum of 7% a month prior to the presentation and about 4.2% a week before.
Given this, Narendra Solanki, Head - Equity Research (Fundamental) at Anand Rathi Shares & Stock Brokers, advises investors to focus on growth stocks. Meanwhile, Ajit Mishra, who is VP-Research at Religare Broking suggests accumulating infra, agri, and defence-related stocks on dips.
As regards Wednesday, movement in bond yields and oil prices will be the key drivers of the market. Besides, Q3 results of 33 companies including Bajaj Auto, Ceat, JWS Energy, LTI and Tata Communications, along with IPO of AGS Transact Technologies will guide investor sentiment.
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 "Sensex, Nifty may hit all-time highs ahead of Budget 2022")
