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The domestic equity market rose for a second straight day on Friday despite opening on a negative note. The session remained largely stable, with the index getting stronger as the day progressed. The headline index finally ended with a gain of 67.90 points or 0.56 per cent at 12,248.25. The headline index, which has remained in a broad consolidation zone, averted weakness as it took support at 50-DMA at 12,119.

The upcoming week is going to be an eventful one on Dalal Street with Budget and December quarter earnings of key companies lined up. Moreover, the exchanges will open for six days, instead of the usual five. Budget is by far the most important event of this week, in which the government is expected to make announcements that may give further boost of the economy. The Economic Survey will also be released during the week.

During the week gone by, Mr Market was jittery ahead of the Union Budget and on concerns over high valuation of frontline stocks. However, strong buying emerged in the smallcap and midcap space, helping Nifty50 to surpass its previous highs by a wide margin. IMF, in its wisdom, has trimmed FY20 economic growth forecast for India to 4.80 per cent, which is at a decadal low. But the market is pinning strong on the hopes on the Union Budget 2020, expecting that the Finance Minister willplay her magic wand once again and try and bring about a sustained turnaround in the economy.

Indian market had a volatile week, with recovery setting in the last two trading sessions. While the Sensex rallied over 200 points, the Nifty reclaimed 12,200 levels on January 24. For the week, the Sensex closed 0.79 percent lower, the Nifty ended with losses of 0.84 percent. The Nifty Midcap rose 1.6 percent for the week.

Nifty index managed to respect and turn higher with the support of its 50 DEMA after the profit booking decline in the first three trading sessions of the last week. It negated the formation of lower highs after the four trading sessions which indicates existence of bulls to drive the move towards the upper band of the trading range.

The market saw profit-booking and consolidation in the week ended January 24 after hitting a record high, indicating caution ahead of the much awaited key event of the year - Budget 2020 - which is scheduled to be presented on February 1. The cut in FY20 economic growth forecast to 4.8 percent by the International Monetary Fund (IMF) and mildly subdued Q3 results from banks and select heavyweights dampened the mood of investors. The Nifty50 and BSE Sensex fell 0.8 percent each during the week after more than 3 percent rally in the previous two consecutive weeks.

Nifty50 on Friday took out its immediate resistance at 12,220 and formed a bullish candle on the daily chart, confirming an upside bounce in the market. Analysts said the index has the potential to climb towards the 12,290-360 range, and even 12,400 level, in the coming days. But a Bearish Engulfing Candle on the weekly scale is looking worrisome and, thus, any upside may be vulnerable to selloff, they said.

Nifty50 opened flattish on Friday but witnessed buying throughout the session. The benchmark indices took support around the 50 DEMA on the daily chart and moved higher for the second consecutive session. It negated the formation of lower highs after four sessions, which indicated strength. The index formed a bullish candle on the daily chart and a Bearish Engulfing Pattern on the weekly chart, which implied supplies at higher levels.

We are not confident about the government meeting the fiscal deficit target, the revenue receipts are clearly falling short of target. With that realization, anything below 3.5 percent would be a good number, Anil Sarin, CIO - PMS, Centrum, said in an interview to Moneycontrol's Sunil Shankar Matkar. Edited excerpt:

NSE benchmark Nifty snapped its four-session losing streak on Thursday, as the index reclaimed the 12,150 level. Domestic stocks opened flat, but saw a big jump within the first hour. Thanks to short covering on the day of weekly options expiry, the index finally ended with a gain of 73.45 points or 0.61 per cent at 12,180.35. Nifty held on to its 50-DMA as support on a closing basis. The rally in the headline index appears to be just a technical bounce. Short covering was evident on Thursday, as the rise came along with the reduction in the net open interest.

Mark Matthews, MD of Julius Baer, says Finance Minister Nirmala Sitharaman does not have much fiscal wriggle room in Budget, but if somehow she can pull a rabbit out of the hat, it would make the infrastructure sector look interesting. Excerpts from an interview with ETNOW:-

Nifty50 on Thursday snapped a four-day losing streak to end above the 12,150 level. In the process, it formed a Bullish Harami candle on the daily chart. The 12,220 level may now continue to act as the immediate hurdle for Nifty, analysts said. A Bullish Harami pattern has a bullish connotation for the near term, provided Nifty50 sustains above the 12,094 level and sees follow-through buying next session, said Mazhar Mohammad of Chartviewindia.in.

The general mood shows an acceptance of the fact that things are bad economically. People are not expecting too much from the Budget and that is a very good sign. When an overall consensus starts building up, it typically is the end of the cycle, says Manish Jain, Fund Manager of Coffee Can PMS, Ambit Asset Management. Excerpts from an interview with ETNOW.

After three consecutive days of losses, the Indian market benchmark Sensex settled in the green on January 23, supported by select heavyweights such as Infosys, Larsen & Toubro and ICICI Bank. Market experts attributed the rebound in the market to the modest fall in crude oil prices and positive Q3 earnings by some bluechip companies, including L&T and Axis Bank. The BSE Sensex rose 271 points to 41,386 while Nifty 50 closed with gains of 73 points at 12,180.

Nifty50 dropped for the fourth day in a row on Wednesday and in the process formed a bearish candle on the daily chart. The index closed a tad above the 12,100 level, inside the crucial gap area between 12,130 and 12,040 levels. Analysts said the index appears to be oversold and one cannot rule out emergence of some buying in the coming sessions. But the trend may not emerge unless the index moves beyond the 12,220 level. During the day, Nifty almost tested its 50-day exponential moving average at 12,076. It hit a low of 12,087, before closing the day at 12,106, down 62.95 points or 0.52 per cent.