Last week is very critical for investors, traders, corporate and for the common man as they were waiting for the decision by Finance Minister Arun Jaitley in his fourth Union Budget. But the result was not that bad.The Nifty raise by 8,700 and S&P BSE Sensex end at 28 k.
The Nifty50 close higher at 1.1 per cent while the S&P BSE Sensex gained 1.3 percent.The S&P BSE Midcap index closed 2.5 percent up while the BSE Smallcap index ended 2.4 percent higher.
Akash Prakash, CEO & MD, Amanda Capital as per the sources news said, "The wow moment was the absence of any negatives in the Budget. The market was extremely nervous about the tone and tenure of the government discussions and speeches before the Budget and it appeared an almost anti-rich environment was being created".
Here a list of five factor that gives graph market direction this week:
RBI monetary policy review:
The analyst now eyes on the RBI monetary policy which takes place on February 7-8. Most analysts assume that a 25 bps rate cut by RBI on Wednesday. Kotak Institutional Equities said, "This strengthens our call for a 25 bps rate cut in the next RBI policy review on February 8".
More than 250 companies will announce their earnings this week which include names like, BHEL, CEAT, Punjab National Bank, Tata Steel, Titan, Cipla, IGL, NTPC, Siemens, Tata Chemicals, Union Bank, Aurobindo Pharma, Bata India.
Industrial growth data:
On Friday 10 February government will release its industrial data.Data released by statistics office on Thursday showed high of 5.7% in industrial production.
UP elections & Budget session:
The analyst also a watch on UP elections & Budget session.On February 11, 15, 19, 23, 27, March 4 and 8 Uttar Pradesh elections to be held.
Anish Kumar Sudhanshu, Director & Research Head, Amrapali Aadya Trading & Investments said, "We believe the Union Budget would be successful in attracting votes in the UP election.Hence, any further optimism with regard to the victory of the BJP in UP can bring further cheers to the market".
Technical factors:
Although the Nifty50 close above 8,700 but the profit booking cannot be ruled out.Some of the analysts have displayed a negative separation graph over the next few sessions. Mazhar Mohammad, Chief Strategist - Technical Research & Trading Advisory said, "Certain indicators on the weekly charts generated fresh buy signals, which suggest dips can be bought inti. Near-term weakness shall get confirmed if the Nifty50 closes below the 8,700 level, which may initially drag the indices towards the 8,621 level."
"A close above the 8,757 level shall open it up towards much bigger targets closer to the 8,900 level over a period of time", he added
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