Investors are locking in profits in stocks ahead of the highly volatile Union Budget 2024 session. Global cues remain positive with lower crude prices and optimism over a US Fed rate cut in March. FII selling is dampening investor sentiments. Nifty and Bank Nifty levels to watch out for are 21,000-21,100 and 43,500-44,000 respectively. Expectations for the Union Budget include spending on infrastructure, job creation, tax exemptions, and incentives for various sectors.
The long-term outlook for the consumption theme appears promising, owing to increasing incomes, a young population, and an expanding middle class, noted analysts.
Nifty has had a spectacular rally so far, with the benchmark index trading at life-time highs. Most of the key technical indicators including the Advance-Decline Line, 87% stocks trading above their 200-day moving average, and lower India VIX – all point towards an overall positive investor confidence, Aamar Deo Singh, Senior Vice President-Equity, Commodity & Currency at Angel One said.
The Nifty IT index jumped 5.1% with Infosys soaring 8% and TCS rising 3.9% after their December quarter results and the associated commentary kept hopes alive that the environment may not deteriorate further.