The Union Railway Budget 2016-17 focused on capacity creation in the rail sector, with an increased outlay of about Rs. 1.21 lakh crore, and on completion of the ongoing projects rather than announcing new ones.
Mr. Rohit Gadia, Founder & CEO, CapitalVia Global Research Ltd.
This week Nifty Future begins with positive sentiments but took a sharp reversal from its short term up trend, keeping two important events in focus - Rail Budget and Union Budget. Railway Minister Shri Suresh Prabhu today proposed increasing capital outlay for the Railways, the world's fourth-largest rail network, by 21% to Rs 1.21 lakh crore.
Today it opened flat and slipped into red ahead of major events: Rail Budget and Expiry of F&O February series. Rail stocks were trading in negative territory like Texmaco Rail & Engineering , Kalindee Rail Nirman were down by 4 % and 3% respectively and Nifty was trading below the psychological level of 7000 , at 6988 ; almost 30 points down.
Market is likely to remain weak in near term, Some revival can be seen,only if Union Budget brings any positive changes.
Technically ,Nifty Future has major support at the level of 6950, we are expecting it to trade in range of 7100 and 6950, if it consolidates and breaches this support mark, it may test the next support level of 6875. On upper side major resistance is at 7300, util the market sustains above this level on closing basis, no trend reversal is expected.