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It promises to be an exciting week since this is the week at the fag-end of which the next financial budget would be presented. We would get to know if the government has thought to come up with strong policy initiatives to help the economy grow at a rapid pace at the same time if, how and to what extent the fiscal stimulus given last year would be withdrawn. Perhaps, not much!

However, whatever be the fiscal policy framework going forward the tightening money supply scenario would affect the market for sure. Our understanding is that fiscal scenario would not be changed much since at a time when the market is as it is in a jittery mood in the wake of crisis in the Euro zone withdrawing the much cherished fiscal stimulus would signal the end to the government’s disinvestment dream. Thus, there would, most likely, be a status quo kind of a scenario is possible where things are left as it is with little bit of tinkering here and there.


This week, once again, the crucial zone for the Nifty would be the range between 4930 and 4950. If the Nifty manages to get past this range only then expect fresh momentum to any kind of an upswing.

Else, if the Nifty succumbs below 4825 level then we would see strong selling emerging. Thus, for the day 4825 and 4930 are sort of key boundary levels. In case, 4825 is broken then the level of 4790 is more likely to be tested. Next support would be at 4749.

Rajat K. Bose