Indian Market The company is headed for a bumpy ride in the week, with the Kremlin and Ukraine dominating the conflict mood again. After settling into a bearish tone for four consecutive weeks, the benchmark Nifty 50 and Sensex finally posted gains in the past week as the outcome of state elections lifted sentiments heavily, and crude oil prices in the last two sessions. The fall in the price led to a further jump. ,
On Friday, the Sensex closed near 55,550 and the Nifty 50 closed slightly above 16,630. Nifty was a little shy of the 17,000-mark throughout the day as the markets remained confined with outperforming pharma stocks and oil stocks also posted significant gains. Meanwhile, paper stocks also rose amid rising prices to offset input cost pressures. Overall, the market witnessed wide buying with marginal improvement in auto and IT stocks.
From March 07 to March 11, both Nifty and Sensex have gained more than 5 per cent. Barring the red mark on Monday, the bulls gave good support to the market for the rest of the day.
Talking about the performance of last week (March 07-11), Vinod Nair, Head of Research, Geojit Financial Services said, “Domestic market got off to a weak start with heavy selling as oil prices cross $130 per barrel for the first time. Rise up. July 2008, following the risk of US and European sanctions on Russia’s oil exports.”
“However, the state election results turned positive for the market, and oil prices started cooling down,” Nair said. The progress of the high-level talks between Russia and Ukraine saw an increase in optimism in the Indian markets and a surge Global markets. US CPI inflation recorded a 40-year high on the back of higher gasoline, food and housing costs, casting doubt on the global trend. Inflation levels in India and abroad are set to rise further in March moving forward, albeit temporarily in view of the implications of the Russia-Ukraine issue.”
In the coming weeks, the focus will shift to inflation data, policy announcements from major central banks and weekly F&O closures. Whereas Russia and Ukraine will continue to hold the majority share of the growth market outlook in the war.
“Next week the market will focus on easing commodity prices and diplomatic developments between Russia and Ukraine. If these global trends turn positive, the Indian market will perform well, otherwise it may turn choppy. Will focus on inflation data to be released in India and the US, and the US Fed and BoE meeting next week,” Nair concluded.
Rupak Dey, Senior Technical Analyst, LKP Securities, “Nifty consolidates during the day, which can be taken as a break before the next directional move. At the higher end, 16700 is likely to act as resistance to the rising index price A decisive move above 16700 may prompt a rally towards 17000. At the lower end, support is seen at 16400-16380, below which Nifty may correct.
India will announce its wholesale and consumer price inflation data for February 2022, tomorrow. In addition, the US Federal Reserve is set to meet from March 15-16 to make a decision on the tapering of bonds while rate hikes are on the cards. Later, the Bank of England will also announce the policy outcome on March 17 followed by India’s weekly F&O end on Thursday.
However, the week will be shorter for business as the markets will remain closed on Friday due to Holi festival in India.
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