If Nifty closes below 23644.80 today, marking the last calendar month’s closing, it would signify a record fourth consecutive negative closing, a trend we haven’t seen since September 2001. Remarkably, even during the global financial crisis of 2008 and the COVID-19 pandemic in 2020, Nifty did not experience four consecutive months of negative closing.
The recent decline has been over 13% from its peak, with a short-covering rally bringing the index up by nearly 500 points. This reflects the volatility and uncertainty prevailing in the market, as traders continue to react to a mix of global and domestic factors.
As we approach the Union Budget, all eyes are on the government’s fiscal policy, which is likely to play a crucial role in determining the market’s direction in the near term. A positive or growth-oriented budget could provide the much-needed support to reverse the negative momentum, while any disappointing measures might continue to weigh down investor sentiment.
The market is at a critical juncture, with both technical and fundamental factors influencing the outlook. Investors are keenly awaiting the Budget to gauge its impact on sectors and overall economic growth.
