A steep drop in food inflation helped the Indian market stretch the ongoing recovery to five straight trading sessions. The Nifty surpassed 5500 and closed well above it. A move past 5500 has triggered hopes of a move towards 5690. It remains to be seen if the Nifty is able to keep its head above 5500.
Volumes and turnover improved on Thursday, which is a welcome sign. But, FII flows remain erratic and are yet to signal a decisive turnaround. The start today is likely to be a good one on the back of a healthy trend across global markets. Things may turn a little choppy later in the day as market participants would be cautious ahead of next week’s Budget session.
Railway Budget is scheduled for Feb. 24 while the Union Budget will be presented on Feb. 28. GDP data for Q3 will also be released on the same day. One will also have to contend with the F&O expiry next week.
The Indian market may meet some resistance after a strong pull-back. The good thing is that sentiment has improved. The broad range for the Nifty is expected at 5300-5700.
