The Indian markets rose a day ahead of the Budget 2022 for the first time in three years. In this regard, the Sensex was over 800 points higher and the Nifty50 up almost 1.5 per cent at the close on Monday. In the broader markets, the Nifty Mid-cap index grew by almost 500 points at the close.  

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As many as 44 stocks closed positive and 6 slipped on the Nifty50 list after the Economic Survey announcement. All sectoral indices reported record gains, as realty, PSU Bank and IT concluded to be the top gaining indices on Monday. The market breadth favours advances, as the advance-decline ratio stood at 1:1. 

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Midcap IT stocks move sharply higher, Info Edge, Mindtree, Birlasoft were the top gainers at the market close today. Exide falls 1 per cent after reporting a weak third quarter results. 

While Rakesh Jhunjhunwala-backed Canara Bank continued its up move after a strong Q3 earnings, touched a new 52-week high, similarly, Bank of Baroda and IDFC also hit respective 52-week highs. 

On the global front, the world markets turned positive backed by gains in the US market as investors ignored geopolitical disturbances and turned their eye towards strong earnings numbers from tech firms, Vinod Nair, Head of Research at Geojit Financial Services said in his post-market comment. 

The major macro indicators of the survey gave confidence that the country is well placed to face future challenges with GDP growth for FY23 projected at 8-8.5 percent, Nair further said. 

India VIX was up by 6.05% from 20.70 to 21.95 levels. Volatility is on the higher side ahead of the Union Budget signaling volatile swings in the market 

We have collated views from different experts as to what investors should do when trading resumes: 

Expert: Vijay Dhanotiya, Category Lead- HNI Products at CapitalVia Global Research Limited. 

The market continues to trade in a narrow range. Nifty breached the level of 17400 but could not maintain the crucial levels and saw a sideways movement thereafter. The bullish movement in the market is still likely to continue after a decisive breakout above the zone of 17400-17450. 

 The momentum indicators like RSI, MACD indicating a positive outlook to continue and market breadth to improve further after the decisive level breakout of the resistance zone.  

Rajesh Bhatia - MD & CIO - ITI Long Short Equity Fund. 

The primary trend of the market could see a dent in the medium term due to inflation risk panning out. Rising rates can see positive momentum in financial stocks. And domestically financials can outperform. The budget is seen as more optimistic, considering the better tax collections and improved current account, due to higher forex reserves resulting from increased IT exports.  

Government in this budget is expected to improve the consumption and focus on reviving growth in the economy especially in the rural segment. Budget can take certain measures to improve consumption at the bottom of the pyramid, like more allocation to MANREGA, rural road development, PM Aawaas yojna etc.  

Expert: Chandan Taparia Vice President | Analyst-Derivatives Motilal Oswal Financial Services Limited 

Nifty index opened positive and remained positive to range bound for most part of the day. It headed towards 17400 levels during the day but remained consolidation with some profit booking decline and finally closed with gains of around 240 points.  

It formed a small bodied Bullish candle on daily scale and has been making higher lows from the last three sessions. Now, it must hold above 17250 zones, for a bounce towards 17500 and 17777 zones whereas support exists at 17180 and 17000 zones. 

Expert: Parth Nyati, Founder, Tradingo  

Indian equity market witnessed decent gain one day ahead of Union budget as there is calmness in the global market. Investors are looking for value in many pockets after a recent correction, therefore, we are seeing bargain buying whereas the market is oversold and short-covering is another factor that is helping the market to move higher.  

Global markets are digesting hawkish US Fed however there are still geopolitical concerns but the budget is going to be a key event for us tomorrow. Other than the budget, Q3 earnings and monthly auto sales numbers will be some other important triggers.   

Expert: Sachin Gupta, AVP, Research Choice Broking. 

Technically, the nifty has breached the prior three days highs & settled in a green candle on the daily chart. The index is also trading above 78.6% Retracement Levels, which indicates further support around 16800 levels. 

 We are expecting a high volatility in the Index for tomorrow on the account of the Indian Budget. At present, the Index has support at 17100/16800 levels while resistance comes at 17500/17650 levels. On the other hand, Bank nifty has support at 37300 levels while resistance at 38700 levels.