Budget play import role in concluding market direction

The market has faced selling pressures for six consecutive sessions, with each of the benchmark indices losing more than one percent last week. The BSE Sensex was down 2,592.77 points, or 5.3%, to 46,285.77, and the Nifty50 fell 737.3 points, or 5%, to 13,634.60. Experts say the following about the market for next week:

* Shrikant Chouhan, Executive Vice President, Technical Equity Research, Kotak Securities | The crucial supports would be 13570/46100, 13440/45700 and 13250/45000. On the higher side, 14000/47200 and 14200/47800 would be big obstacles. At best, we could see 14500/49000 levels and the trend would turn extremely bullish if the Nifty breaks 14800/50200. The strategy should be to reduce weak long positions between 14200/47200 and 14500/49000. It is recommended to buy when the Nifty falls to 13500/46000 with a trailing stop loss at 13200/45000. The focus will be on financial services, pharmaceuticals and commercial vehicles.

* Siddhartha Khemka, Head of Retail Research, Motilal Oswal Financial Services | Looking ahead, markets could remain very volatile in the current earnings season and in the Union budget. Household expectations are high. However, the government’s budget response for 2020 shows some rigidity and a lack of resources to stimulate the economy. We encourage investors to seize this fall’s opportunity to rack up some falling quality stocks, while traders should pay attention to stock-specific metrics. The market would also monitor the RBI’s monetary policy during the week, as well as the BoE’s monetary policy for further clarification.

* Manish Hathiramani, Owner Index Trader and Technical Analyst, Deen Dayal Investment | Markets managed to break 13,700 and also closed lower. You can still slide to 13,400 and 13,200. Any rally can be used to shorten the Nifty for lower goals. Resistance is now at 14,000 and until it is broken we will remain under the control of the bears.

* Vinod Nair, Research Director, Geojit Financial Services | The budget will be the key to strengthening the internal market. The risk is that expectations are high and the government will have to find a balance between populism, reform and growth with a low budget. Auto stocks remain the focus of concern, and investors are on the lookout for January sales after a solid December. The global market will be attentive to any regulatory measures that may be taken in the face of the recent problem of speculation and will question the efficient functioning of the market system.