Don’t budge before the budget!
The budget evolved from a management tool into an obstacle to management.
Going by the markets performance this week, it appears that the budget has evolved from a market mover to a market obstacle. How else can one explain one of the worst weekly falls in the seven months. The bulls who have been hammered for four days in a row will hope for some relief on Monday. Any lack of buying at open will prompt further margin calls and accelerate the slide on Monday. And don’t be surprised if Monday turns out to be another Manic Monday. The big event, which many will later like to term as a non-event is the budget. No bad news would be the good news here. We have been advising to stay light ahead of the budget. With this week’s fall and another fall expected before the budget, you could pick up your favorite stocks, which definitely offer better value compared to the recent weeks. And again, avoid the small packs as the exit options are less. Bulls can hope for some salvation from heavyweights like Reliance. The Reliance board is meeting on Saturday to review the decision taken by the board to raise US$2bn. Granules is another counter where some action is expected. Nirlon could once again come in the limelight as the company will discuss development of an IT park in Goregaon.