The Nifty index, one of India’s key stock market indicators, is facing a rare situation. If it continues to decline this January, it will mark its fourth straight month of losses. This hasn’t happened in 23 years!
What’s Happening?
Rupak De, a Senior Technical Analyst from LKP Securities, highlighted this trend. Over the last ten days, the Nifty has been moving in a tight range of 23,000 to 23,400 points. For the past three days, it’s been stuck in an even smaller range of just 200 points.
Such limited movement often happens before major events – and in this case, it’s India’s upcoming budget.
The budget is a critical event that affects the stock market, as it outlines the government’s plans for taxes, spending, and investments.
Why Is This Important?
If Nifty continues its losing streak, it will break a record that has stood since 2002. A long streak of declines can shake investor confidence and signal challenges in the market.
Read also: Will Nifty 50 Soar to 29,000 by end of 2025? Insights from 7 Top Brokerages
What Should Investors Do?
During uncertain times like this, Rupak De suggests that traders adopt “non-directional strategies.” This means instead of betting on whether the market will go up or down, they can prepare for any outcome. Two popular strategies he mentioned are:
- 1. Options Straddle: This involves buying both call and put options at the same strike price.
- 2. Options Strangle: Here, traders buy call and put options at different strike prices.
These strategies can help investors benefit from market volatility, regardless of the direction.
Stocks to Watch
As budget week approaches, some stocks are worth keeping an eye on. Rupak De mentioned companies like:
- Britannia: A leading FMCG (fast-moving consumer goods) company.
- Macrotech: A real estate developer.
- InfoEdge: Known for its online platforms like Naukri.com.
These companies might see significant movement depending on the budget announcements.
#Final Thoughts
The Nifty’s performance this month is under close watch. While it’s normal for markets to fluctuate, breaking a 23-year record of losses can be unsettling for traders and investors.
The budget will play a crucial role in determining whether the market rebounds or continues its downward trend. For now, investors should stay cautious and use smart strategies to navigate this uncertain period.
