According to many analysts, Indian markets will be mainly influenced by global cues in the next week as well as factors like macroeconomic data, February auto sales numbers. He also believes that inflow of foreign investors, volatility in rupee against the US dollar and trend in Brent crude oil may also impact domestic equities in the coming week.
Dalal Street closed in the red for the sixth consecutive day on Friday. BSE companies have witnessed wiping out of investors’ wealth worth over Rs 8 lakh crore in the last six trading days. PSU Bank smelly It fell 5.50 percent this week and it is noteworthy that till recently it has been the leading sector in the Indian market. In the past week, each day’s advanced decline was negative and this is now the longest decline for the market since June of last year.
VK Vijayakumar, chief investment strategist at Geojit Financial Services, said, “While there is no clear positive trigger visible for the market right now, a modest pullback is possible going into March with positive returns.”
To focus on the key factors-
Q3 GDP
India’s economic growth slowed to 4.7% in the December quarter from 6.3% in the previous three months, according to a Mint poll. GDP numbers, to be released on February 28, will be a key factor in deciding emerging-market growth in the final phase of 2022.
global signal
Santosh Meena, Head of Research, Swastika Investmart said, “Markets will closely watch the movement of US bond yields and dollar index as well as the direction of global markets. The US will continue to be a major factor in the first half of 2023.
He added that the market is currently not reacting to the geopolitical situation, but any unexpected development—positive or negative—could cause the market to move significantly further.
FII inflow
Selling by FIIs continued last week, but has slowed down since January.
Worries about rising interest rates in the US saw bond yields rise and the dollar strengthen. The dollar index is up 3% so far in February.
“Rising rates in the US could lead to more capital outflows from emerging markets. This month saw good capital inflows into South Korea and Taiwan,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services.
corporate action
Marico’s board will meet on Monday to consider and approve dividend payment, keeping its shares in the news.
Rain Industries and Unitech will be in focus as the companies announce their December quarter results next week.
nifty technical
Analysts said given that the Nifty 50 is trading close to its key support levels, this is a scenario for the market next week.
Rohan Patil, Technical Analyst, Samco Securities, said that on the weekly chart the index has formed a long red candle which has swallowed the last three weeks’ candles, which indicates that bears currently have an upper hand in the market.
“The structure is shifting its momentum towards the bears, and immediate support for the Nifty is placed around 17,350, which is the Budget day low,” Patil said, adding that if prices sustain at this level If it moves below 17,050-17,000. on the cards.
Only a sustained close above the 17,750-17,800 zone could accelerate the uptrend towards the 18,100-18,200 levels.
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