Markets traded flat in afternoon trades this Friday with 50-share Nifty hovering near 5,850 levels led by mild recovery in global markets after Thursday's sell-off.
According to Sahaj Agrawal, Deputy Vice-President (Derivative Research) at Kotak Securities, “Seeing the sell-off in the market in previous sessions, short positions are building up. Therefore, broadly, we see a range of 5,800-5,950 on the Nifty.”
Trading, however, remained on a cautious note with no specific trend emerging ahead of the Union Budget on February 28 and government's road-map to bridge current account deficit and fiscal deficit that will help decide the pace of growth recovery in Asia's third-biggest economy.
"It's difficult to comment on the expiry as we have big event lined up this month and also because of global news flows. However, 5,800 remains crucial for Nifty below which selling pressure will emerge," added Agrawal of Kotak Securities.
Broader markets also traded flat with mid-caps and small-caps inching up 0.1-0.2%. Sectors such as real-estate, IT supported benchmark indices while FMCG and autos remained laggards.
“Over a 3-4 months time, its a buy-on dips market but for immediate term, the volatility will remain as we have Budget next week. For an investor, my advice is to stay focused in frontline stocks,” said Agrawal.
