The Indian Stock Market is in for an exciting week, as the Nifty has taken a breather after a seven week of strong gains. After scaling a record high of 13,385.15 on April 6, the Nifty was trading in a small range around 13,150 mark on April 9.
The past seven weeks of steady gains have pushed the benchmark indices to record levels on hopes of India’s economic recovery. The Indian economy is strongly recovering after the COVID-19 pandemic and investors have been buying stocks on expectations that earnings and economic growth will be stronger for the current fiscal year.
However, after such a strong rally, the markets have paused for a breath and investors are now looking ahead at what the near future holds. Stock market analysts are expecting some consolidation to take place as the markets take a breather after the strong run-up. The Indian markets have been largely driven by global cues, with global markets also taking a pause on the positive news flow from the U.S.
Experts expect the Indian markets to take a breather over the week, and then start a gradual uptrend, as investors start positioning themselves for the budget announcement. Markets are likely to remain range bound until the April 13 budget announcement, with investors likely to remain cautious about investing until the finer details of the budget are released.
In the short term, market participants expect the Nifty to trade in the range of 12800-13500, with volatility set to increase post the budget announcement.
However, in the long term, investors remain bullish about the Indian stock markets. What remains to be seen is whether the markets can sustain the current levels post the budget announcement, or whether it is just a short term breather. Until then, it is a wait and watch game for the markets.