Recently IMF announced very impressive numbers for FY 2022, making India the only major economy to grow in double digits.
Although this failed to create excitement among the investors & Nifty has corrected 993 points (at the time of writing) from its peak levels of 14,753 i.e. almost 7% fall in just the last few trading sessions.
Some are calling it a healthy correction at unreasonable levels & some are referring to it as a profit booking.
As per our analysis, it seems to be a profit booking due to the uncertainty regarding the Union Budget 2021 from which the market has quite high expectations.
And if the budget is as per the expectations of the investors, the market may even cross its previous high.
Also, liquidity is going to remain high in the near term due to the ultra-loose monetary policy of the central banks across the globe, which may continue to move the market in an upward direction.
What’s your view?