As we have mentioned in our last post , the Indian equity markets saw a strong rally . This rally was partly fuelled by value buying after the overdone correction due to fear over demonetization .
The positives that will support the market rally going forward :
The short term concerns for the the market are more to do with the global situation :
While the above mentioned concerns will need to be watched carefully , and analyzed , the medium and long term rally in Indian equity market will continue .
NIFTY may see some profit taking in the next few days . However any correction will be a buying opportunity .
Indian market has started the recovery process after the crash due to demonetization. Jan / Feb will be volatile months . Both on the domestic and international fronts there are many events that will have strong bearing on the markets.
Budget : The government is expected with a strong pro growth budget. The budget has special significance in context of the demonetization . As demonetization is expected to have a negative effect on the GDP growth in the short term , government will have to take pro active steps to propel growth .
Some of the steps that the government may take in help growth are :
In a nutshell the world is changing . With US policies changing we will see pressure on IT companies . NIFTY trades can remain long with stops .