Budget just a small event in the market's eventual journey upward

Market seems to be struck in a range of 4700 to 4950. Though the expectation is that the budget might set the trend for the intermediate, yet we feel it will be a combination of policy announcements and global cues which will determine the final direction in which the markets will break. Budget is likely to have positive announcements as government too is keen to keep the market sentiment strong. Overall the economic indicators are also positive and we feel that eventually markets are going to break on the higher side. Due to global uncertainties and more importantly valuations racing ahead of time a correction or cooling off was required. Longer the time we spend in this range the better and more sustainable will be the breakout. If the international scenario worsens we might head lower in the short run before eventually moving higher. There is, however no way of confirming whether global markets will break down or not. Hence we recommend investors to stay invested and be patient as eventually markets are going to head much higher in the near term.