Sensex and Nifty witnessed a third consecutive day of sharp gains as foreign portfolio investors (FPIs) halted their relentless selling spree and started buying in the cash market. The BSE Sensex gained 672 points or 1.14 per cent to close at 59,855. The Nifty index gained 179 points or 1.02 per cent to close at 17805. FPIs bought stocks worth ₹1,200 crore in the cash market, stock exchange data showed.
Betting on Budget macros
India’s stock market will remain buoyant ahead of the Budget announcement since the government is expected to close the year with record tax collections, experts said.
CNI Global, a Mumbai-based research firm, had pointed out that India's GST tax collections are likely to witness a 233 per cent jump, direct taxes by 126 per cent and fiscal deficit (shortfall in a Government’s income compared with spending) may fall by 66 per cent. These estimates could make it one of the finest Budgets in nearly two decades.
Also, sentiment in domestic stock markets has improved in the past few days in the wake of the rally in the US stock markets. Key indices in the US markets are trading near their all-time high levels.
“The indices are in no mood to correct and the momentum still continues to be robust. The intra-day declines are witnessing buying interest, which is a sign of healthy momentum. We continue with our positive bias and expect Nifty to continue the move towards 17,900 or 17,970. Some confluences of retracements are placed in the range of 17,900-17,970, followed by 18,050. The short-term trend continues to remain up and hence, short-term traders are advised to continue to trade with a positive bias. However, in the above mentioned range one can look to book profits and take some money off the table,” said Ruchit Jain, at 5Paisa.com.
“We have achieved the 17,800-17,850 target for the index! There might be some level of resistance between 17,800-17,950, but eventually, the market might want to scale higher to 18,050-18,100. Any dip or intraday correction can be utilised to add long positions on the Nifty,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.