|Market This Week
||Last week there was some heavy buying from the FII’s. However the FII buying was matched by domestic institutional huge selling. The domestic selling was slightly on the heavier side and the markets entered the negative zone. Sooner the balance will move in favor of the FII buying and this is what we expect. Note that this is a very positive sign. For the bull rally to start, the market needs to come in the hands of the stronger players (FII’s) and this is exactly what is happening now. The domestic investors will ultimately quit and the markets would then move strongly upwards.
The kind of of sluggishness that we are witnessing now may last for a couple of weeks more till maybe the budget. The Budget coming towards end of February could act as trigger for the market. The FM has given a lot of positive vibes and the market could rally post budget. Although, nothing major is expected from the Budget but historically it’s just an event that people look forward to. This time around however if the FM is able to convince the markets that the fiscal deficit will be kept under control and subsidies will be well managed then it will further boost the sentiments and one could see more FII flows coming in. For now the markets would be range bound with the balance more on the negative side. Good time to go SHORT till the budget.