The Indian markets will primarily be influenced by elements akin to macroeconomic knowledge, February auto gross sales numbers, together with world cues within the subsequent week, in accordance to a number of analysts. They additionally consider overseas buyers’ stream, the rupee’s motion in opposition to the US greenback, and Brent crude oil development may impression the home equities within the coming week.
Dalal Street ended within the purple for the sixth straight day on Friday. The BSE corporations have seen investor wealth of over Rs 8 lakh crore worn out within the final six buying and selling days. The PSU Bank Nifty fell 5.50 % this week and it’s noteworthy that this has been a number one sector within the Indian market until not too long ago. In the week passed by, the superior decline each single day was adverse and that is now the longest shedding streak for the market since June of final 12 months.
“Even though there are no clear visible positive triggers for the market now, a mild reversal is possible, going forward, culminating in positive returns in March,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Key Factors to Focus on-
Q3 GDP
India’s economic growth likely slowed to 4.7% in the December quarter from 6.3% in the preceding three months, as per a Mint poll. The GDP number, scheduled to be released on 28 February, will be a key factor to decide on how emerging-market growth held up in the final stretch of 2022.
Global Cues
While Santosh Meena, Head of Research, Swastika Investmart said, “The market will continue to keep an eye on the direction of global markets along with the movement of US bond yields and the dollar index in the near term as the interest rate scenario in the US will remain a dominating factor in the first half of 2023.”
He added that the market isn’t currently responding to the geopolitical situation all that much, but any unexpected development—positive or negative—could cause the market to move significantly.
FII Flows
The selling by foreign institutional investors continued last week, but the pace has slowed down from January.
Concerns around interest rate hikes in the US saw bond yields rising and the dollar strengthening. So far in February, the dollar index has gained 3%.
“Rising rates in the US might lead to more capital outflows from emerging markets. South Korea and Taiwan witnessed good capital inflows this month,” said V K Vijayakumar, chief investment strategist at Geojit Financial Services.
Corporate Action
On Monday, the board of Marico will meet to consider and approve dividend payment, which will keep its stock in the limelight.
Rain Industries and Unitech will be in focus as the companies will declare their December quarter earnings next week.
Nifty Technical
Given that the Nifty 50 is trading closer to its key support level, it’s a make-or-break situation for the market next week, analysts said.
The index on the weekly chart has formed a tall red candle that has engulfed its previous three weeks’ candles, which indicates that currently, bears are having an upper hand in the market, said Rohan Patil, technical analyst at SAMCO Securities.
“The structure is shifting its momentum towards the bears, and the immediate support for the Nifty is placed at around 17,350 levels which is the Budget day’s low,” Patil said, adding that if prices drift below this level, then 17,050–17,000 will be on the cards.
Only a sustained close above the 17,750-17,800 zones is likely to trigger a bullish momentum towards 18,100-18,200 levels.
Read all of the Latest Business News right here
