Anticipating the Interim Budget 2024: Strategy Insights

Anticipating the Interim Budget 2024: Strategy Insights

VoM News Desk | January 24, 2024 | 02:26 PM IST | Breaking News | Follow on Google News

Anticipating the Interim Budget 2024: Strategy Insights/AFP

Anticipating the Interim Budget 2024: Strategy Insights

As the interim budget for FY25 approaches on February 1, 2024, market participants are gearing up for potential impacts on fiscal consolidation and policy priorities. While major announcements might not be expected, the budget will set the stage for future policy decisions and capital expenditures, with a close eye on fiscal consolidation rates, as per brokerage reports and experts.

Market Outlook and Trading Recommendations

The current retracement of indices from the Oct-Dec rally is viewed as a healthy correction (~15%), making the market more robust. Despite an anticipated lighter note leading up to the Union Budget session, experts warn of elevated volatility on budget day. The recommendation is to focus on quality stocks and consider buying opportunities in the Nifty 50 in the range of 20,800–21,000, while being cautious of resistance around 21,700.

Sectors to Watch and Trading Opportunities

Historically, sectors influenced by the Union Budget include infrastructure, rural spending, housing finance companies, banks, and capex-oriented sectors. Experts anticipate trading opportunities in companies with exposure to rural areas, infrastructure, capital goods, PSUs, and housing finance during this year’s interim budget day.

Trading Strategy Tips

Given the expected high volatility during budget sessions, traders are advised to maintain strict stop-loss levels and refrain from trading until clarity emerges from budget announcements. This cautious approach aims to navigate potential market fluctuations triggered by budget-related developments.

Note: The full budget is scheduled to be presented in May 2024, following general elections by the new government.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.