Action packed week ahead for Indian Markets - Consortium

Nifty declined marginally by 2 points to close at 5850. Despite a recovery in the global market, Indian market was lackluster amid thin volumes. The next week will be an important event for Union Budget (28th February).

Traders prefer wait and watch policy till the Budget. Metal, Auto and FMCG were major losers among the BSE Index. Commodities like Brent crude and Base metal price declined. As a result, Hindalco and Sterlite declined in the last couple of days.

Tech stocks witnessed sharp on the rupee depreciation and on expectations of increased outsourcing from Europe. Wipro has gained by 2.6% to close at Rs216. Both Infosys and TCS gained marginally.

Telecom stocks witnessed fresh buying ahead of tariff hike. Both Idea and Bharti Airtel surged by 5% each.

Asian markets gained modestly after sharp declines yesterday. European markets surged nearly 1% as German business confidence jumped to a 10-month high.

For the day coming by, global cues are positive. US Stocks finished near session highs Friday, recovering from a two-day slump, lifted by upbeat economic data from Europe and after comments from St. Louis Fed President James Bullard that the central bank's aggressive easy money policy will stay for a long time.

Asian stocks are also trading higher in early trades, with stocks in Japan surging 2 % after the yen slumped. The RBI's proposal to issue fresh bank licences to corporates and other entities, and investor expectations of market-friendly measures being implemented as part of the Union Budget later this week could lift sentiment a tad on D-Street, after last week's sharp correction.

The Railway Budget for 2013-2014 will be presented to the Lok Sabha on Tuesday, The Economic Survey of India will be laid in the Parliament on Wednesday. Union Budget 2013-14 to be presented to the Parliament on Thursday. F&O expiry on Thursday will also keep the markets volatile.

FIIs sustained selling in index futures is keeping the market nervous and capping the upside. The Nifty held its ground near the 100 days SMA. The Nifty is oversold and has the support of the 100 days SMA behind it. With the Union Budget this week, the market can see short covering. The 5800 level is the 23.6% Fibonacci correction level from 4788 to 6111 and should be a strong support. On the way down supports are at 5840, 5820 and the one at 5800. Resistances are at 5874, 5905 and 5920.

Source : Equity Bulls

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