Zee Business Managing Editor Anil Singhvi has revealed the roadmap for investors on what they should do on Budget 2021. The Market Guru said that investors should not predict what the Budget would be and how the markets will behave after it is presented. he added that it is of critical importance to understand how markets should be approached ahead of Budget. 

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Budget 2021 Cost to Pay?

Market participants should benefit irrespective of the Budget being Good or Bad, Singhvi said. Why? Because there is a cost to pay for getting it all wrong. The Market guru said that if market participants have taken short positions in the market and the Budget is good then participants will incur loss. Also, if the market participants are long in the market and the Budget is bad then they will incur loss too. 

Budget 2021 Roadmap

So, what should be done going forward? Rather than taking a view or understanding the direction of the Budget, it is important to concentrate and focus on trade positions being taken. Most important thing to understand for traders is that if the position taken in the market is not aligned with the Budget announcements, in that case how to handle the situation and what to do to avoid losses.

What to do on Budget Day

Investors should ensure that they do some buying on the day of the Budget. Investors, who intend to do SIP, should ensure that they start from Monday itself. Those investors should do their first SIP / Instalment at Monday’s closing price. 

The Finance Minister had said that the Budget will be extremely good and historic for India. 

In case if the Budget does not meet expectations or if the Budget is bad, then markets may fall Monday or Tuesday and later it will not be taken into consideration after the event is over. 
Notably, markets will be dependent on Global markets and will focus on Dow Futures instead.

Key Point to Note

The key point to understand is that any dips in quality stocks due to Budget announcements should be a good opportunity to buy for Investors. Singhvi said it is extremely good that Nifty has already fallen 1000 points from the highs it made 5 to 7 sessions ago. Singhvi said traders should hope for the best but prepare for the worst.

The Market Guru concluded by saying that traders need to take care of their positions, and the Finance Minister will take care of the Budget announcements, Market will take care of itself. 
Also, notably, the entire Zee Business Team will do its best to give the finest analysis of them all while decoding the Budget fine print for investors.