Markets had a spectacular rally this week with the index gaining close to 3 per cent, as global markets staged a remarkable recovery in trade. This was the best week for markets thus far in 2016.

A rally in crude oil boosted sentiments in trade. Iran agreeing to cooperate over crude oil cuts helped boost sentiments for crude oil, leading to a sharp run in the commodity and stock prices.

ONGC had a good week on Friday, after crude oil prices rallied.

The next week is going to be tricky for the markets. On the one hand we have global cues, which would continue to keep the markets on tenterhook, while on the other hand we have the Union Budget 2016 on Feb 29.

This event is likely to keep the markets volatile and there is little doubt about it. Not much is expected from the Union Budget and expectations are not very high going into the event. However, the real worry is a few recommendations in the budget. There are roumours that capital gains tax would be shifted to three years, instead of the 1 year applicable to equities.

If this were to happen, it would be taken badly by the markets, which may see some selling pressure.

However, in the long term the move maybe good, as it would encourage investors to hold shares for the longer term.

In any case, nothing much is expected from the markets, which are likely to be volatile next week. Those who have a penchant for risk could buy and hold stocks for the longer term.

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