Last week – review:
This week was highly volatile and eventful, Union finance Budget on 1-Feb-23 was continuation of capex budget – a strategy followed by Government of Indian since COVID budget which started with stimulus package post COVID and expansionist since 1-Feb-21 Budget.
Approach on Technical: We believe, technical levels do tend to go beyond chart, support and resistance level.
VIX @ 14.40: We see volatility to reduce substantiality in coming weeks as scheduled event such as Budget, US Fed, BOE & ECB meeting are over & RBI MPC meeting on 8-Feb-23 is awaited. Nifty range for this week seen @ 17580 to 18041 & Banknifty range seen 41024 to 42200.
Market View & Strategy
All key events, Union Budget, US Fed, BOE & ECB meeting were positive for market. RBI MPC policy meeting on 8-Feb-23, we expect first status quo or unchanged in policy by RBI MPC, and expected to be positive for market. ADANI news will continue to drive the market sentiment, but we feel this news have mostly played on.
We would be positioning ourselves with a cautious view and uncertainty and the main reason for this is that there is no substantial trigger for upside. We have positive view on budget but in near term or for the month of February, we see upside limited and downside risk in case of any news flow.