Market Outlook: Along with budget and quarterly results, these factors will decide the direction of the market

Mumbai, July 21. The past week was quite volatile for the Indian stock market. There was buying in the initial days, but profit booking was seen at the end of the week. However, this was the seventh consecutive week for the market, when both Sensex and Nifty have given positive returns.

The budget will be an important factor for the market in the coming week. On July 23, Finance Minister Nirmala Sitharaman will present the first budget of the third term of the Modi government. This time it is expected that the government’s focus in the budget may be on infrastructure and public welfare schemes. Apart from this, the first quarter results presented by the companies and the estimates of interest rate cuts by the US Fed will decide the direction of the market.

Last week, the Sensex closed at 80,604 with a gain of 85 points or 0.10 percent and the Nifty closed at 24,530 with a marginal gain of 28 points or 0.11 percent. Vinod Nair, Research Head of Geojit Financial Services, says that the direction of the market will be decided on the basis of the budget.

Investors believe that the government will spend on public welfare schemes while keeping in mind pro-industry and fiscal consolidation. Arvinder Singh Nanda, Senior Vice President at Master Capital Services Limited, says that Nifty has shown a possible reversal trend after touching an all-time high of 24,854 this week, with support at 24,150 and 23,750. If it goes below this, more selling can be seen. However, 24,850 and 24,900 are strong resistance levels.

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ABS/KR

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