Budgetary expectations to keep Nifty volatile

The Indian equities markets are expected to be volatile as investors look forward to more policy reforms, sops and tax breaks from the Union Budget.

Besides, inflows of foreign funds and stock specific movement due to the ongoing earnings result season will be a major theme for the next week.

“Markets next week will have its entire focus on the Union Budget as the equities markets have already rallied ahead of it,” Devendra Nevgi, Chief Executive of Zyfin Advisors, said.

Recently, a pre-budget rally was triggered by expectations on more spending support from the upcoming budget.

According to D.K. Aggarwal, Chairman and Managing Director, SMC Investments and Advisors, markets might continue their northward movement on the back of budgetary expectations.

“Nifty is expected to trade in the range of 8,450-8,800 levels; 8,450-8,500 would now be seen as a strong support zone,” Aggarwal predicted.

Apart from the budget, the week ahead will be heavily influenced by the corporate earnings for the third quarter of FY 2017.

Companies like HDFC, Grasim, Tech Mahindra, Bajaj Auto, ICICI Bank and JSW Steel are expected to announce their quarterly results in the coming week.

“The earnings season so far has offered positive surprises, especially materials and some banks,” Nevgi said.

Traded Value (Rs. In Crores)    24587.82
Traded Quantity (in Lakhs)    12942.37
Number of Trades    8897658
Total Market Capitalisation (Rs. Crores)    11184067

ADVANCES    820
DECLINES    836
UNCHANGED    66

In the cash segment FIIs were net buyers to the tune of Rs 218 crores and DIIs net buyers to the tune of  Rs 483 crores.

FIIs bought net 8859 contracts of index futures, bought net 10784 contracts of index calls and sold net 17249 contracts of index puts.

Now FIIs are holding net long 139661 contracts of index futures, net long 21398 contracts of index calls and net long 167885 contracts of index puts.

Retailers sold net 3390 contracts of index futures, sold net 5251 contracts of index calls and bought net 18160 contracts of index puts.

Pros sold net 2054 contracts of index futures, sold net  5553 contracts of index calls and sold  967 contracts of index puts.

FII positions in Index puts, futures and calls.

Nifty Put Call Ratio (PCR) data shows support at 8600 and resistance at 8700

(With agency inputs)