The home market skilled one other week of disappointment with the benchmark indices shedding almost 2 per cent in a ripple impact of the banking disaster within the US. A final-hour shopping for on Friday, nevertheless, helped it pare some losses following a rescue package deal to San Francisco-based First Republic Bank and monetary help to Credit Suisse. The 30-share BSE Sensex rose 355.06 factors or 0.62 per cent to settle at 57,989.90 on Friday. The broader NSE Nifty gained 114.45 factors or 0.67 per cent to finish at 17,100.05.
For recent cues, market members will keenly be careful for subsequent week’s US Federal Reserve financial coverage consequence and foward-looking steerage. Crude oil and the Indian foreign money may also play an important function in market motion. Apart from this, the Japanese inflation price for February shall be introduced on 24 March, 2023.
“In absence of any main home occasion, the main focus can be on the upcoming FOMC meet scheduled on March 21-22. Besides, motion in crude and pattern of overseas flows may also be in focus for cues,” stated Ajit Mishra, VP – Technical Research, Religare Broking Ltd.
US FOMC Meet
The US Federal Reserve policy meeting on March 21-22 will be a key event to watch out for this week. Experts largely expect the Fed to continue with its rate hike path given the inflation above its 2 percent long-term target, though eased to 6 per cent in February from 6.4 percent in January. The core inflation also eased to 5.5 per cent from 5.6 per cent in same period.
US Banking Crisis
The market participants will also keep a close watch on the crisis in the US banking space especially after Silicon Valley Bank filed for bankruptcy and Signature Bank went shut.
San Francisco-based First Republic Bank was the third one facing similar kind of issues but was saved with a $30-billion lifeline from 11 major US banks, including JP Morgan Chase and Morgan Stanley, bringing back the memories of the 2008 global financial crisis.
Experts largely believe the crisis is not only restricted to the US but also seems to be in other parts of world.
In the passing week, Credit Suisse also received a credit line of up to $54 billion from the Swiss National Bank to boost liquidity, but experts are still watching it closely.
Oil Prices
Oil prices also caught in a bear trap, after crisis in the banking sector, posting the biggest weekly decline in the current calendar year. Any fall is always a welcome from oil importing countries like India but needs to be watched closely whether the decline is sustainable or not, said experts who still expect supply constraints may continue to support the prices.
Corporate Action
Hindustan Aeronautics, Ujjivan Financial Services, GAIL India, SAIL, NALCO, Sun TV Network, Aditya Birla Sun Life AMC, and Glenmark Life Sciences will trade ex-dividend next week.
Nifty Technical
“Markets may take a breather initially however the upside also seems capped. Nifty could face hurdles around the 17,250-17,400 zone while the 16,600-16,800 zone would provide the needed cushion, in case the situation deteriorates further,” Mishra stated.
After displaying excessive volatility on the swing low of 16850 ranges on Thursday, Nifty confirmed a sustainable upmove with volatility on Friday and closed the day larger by 114 factors, stated Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
A small physique of detrimental candle was fashioned on the every day chart with lengthy decrease shadow. Technically, this sample, Shetti stated, signifies a formation of lengthy legged doji kind candle sample (not a classical one). “Hence, we observe again to again doji sample within the final two classes. The present market motion means that market is within the means of close to time period backside formation,” he said.
“Nifty on the weekly chart has formed a long bear candle with lower shadow. The negative chart pattern like lower tops and bottoms is intact on the daily chart and the swing low of Thursday at 16850 could be considered as a new lower bottom of the sequence. One may expect Nifty to move up from here towards the next overhead resistance of 17300-17350 levels by next week. Immediate support is at 16950 levels,” Shetti stated.
Bank Nifty
Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd., stated: “Banknifty additionally fashioned a type of spinning backside candlestick formation close to the vital help stage of 38700 and managed to maintain above the 39400 stage. Now we will anticipate a short-covering transfer in direction of the 40000 and 40500 ranges. On the draw back, 38700–38500 is a powerful demand zone.”
What Should Investors Do This Week?
Since we’re witnessing a mixed trend across sectors, Mishra said that traders should continue with stock-specific approach, with a focus on overnight risk management.
Read all of the Latest Business News right here
