Budget 2019 preview! Nifty, Sensex gearing up for new all-time highs - Heres what investors should do
Budget 2019 Day: On Thursday, Sensex closed at 39,908.06, up by 68.81 points 0.17%, while Nifty 50 closed at 11,946.75, above 30 points or 0.25%.
Budget 2019 day has arrived and every investor will trade on a wait-and-watch mode before the announcements by Finance Minister Nirmala Sitharaman are made in Parliament today. On Thursday, Budget 2019 Day: On Thursday, Sensex closed at 39,908.06, up by 68.81 points 0.17%, while Nifty 50 closed at 11,946.75, above 30 points or 0.25%. Gainers list included stocks like UPL, Bharti Airtel, Britannia, Tata Motors and Ultratech Cement. Reforms in regards to India's fiscal deficit, income tax rebates, GDP and investment boost will be keenly watched. Notably, the Railway Budget has been merged with the main budget and will be announced today itself. Post Budget, both Sensex and Nifty are seen soaring to new all-time highs.
Here's what experts are saying about Budget 2019 day:
Angel Broking:
Experts here in their research stated that, five months back we had an interim Union Budget which was as good as a non-event for our markets. However post this; our markets saw some wild swings due to some major developments on the global as well domestic front. In the midst of this, Indian benchmarks managed to clock record highs to reach yet another milestone of 12000. Markets once again struggled at higher levels and we are a bit off from the recent peak of 12103.05 and are consolidating around key supports.
The note added, "Technically speaking, we still remain hopeful as long as 11630 – 11591 are not violated and on the higher side, we will not be surprised to see move towards 12000 and beyond in next few days. Before that 11850 – 11900 has become a sturdy wall, which needs to be surpassed convincingly. We hope it be broken in the first half of the coming week, which will trigger some sharp moves in the upward direction. If things go as per our expectations then Nifty is clearly gearing up for a move towards 12200 – 12400 in next few weeks."
Amit Gupta, Co-Founder, and CEO, TradingBells:
“Nifty and Sensex both are consolidating between election result day's high and low for more than a month as it is waiting for further cues to get out of this range where Union budget could be a trigger which will dictate the direction from here. If the government manages to boost market sentiment through this budget then Nifty and Sensex can take their hurdle of 12041/40125 respectively which is election result day high and may head towards 12500/41700 levels. Any disappointment from the budget could disturb the mood of the market in the near term where the support of 11600/38800 for Nifty and Sensex will be under threat and they may head towards 11300/37600 levels but that dip could be a great buying opportunity to make a good return in FY20.”
Mustafa Nadeem, CEO, Epic Research:
The shooting star is a reversal pattern usually before a reversal in an established upward move. If not explicitly this pattern does indicate a halt to the existing momentum and a kind of exhaustion. Hence the reliability comes after seeing confirmation in following trading days.
12000 - 12050 levels are very important as we are continuously seeing selling pressure around that zone and Nifty failing to breach it. With Budget coming up, we believe there are chances of some decisive move. One should remain cautious and have a conservative approach to the market rather than being aggressive or carrying a naked position.
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