Market Outlook for Next Week: Retail Inflation, FIIs Data, and Holi Break in Focus
These include India’s retail inflation data, Foreign Institutional Investors (FIIs) activities, dollar-to-Rupee fluctuations, and developments surrounding Trump’s tariff policy.
Mumbai: The market outlook for the upcoming week will be influenced by several important domestic and international factors.
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These include India’s retail inflation data, Foreign Institutional Investors (FIIs) activities, dollar-to-Rupee fluctuations, and developments surrounding Trump’s tariff policy.
Key Data Releases and Market Closures
India’s retail and wholesale inflation data will be released on March 12, with the stock market closing on March 14 in observance of the Holi festival.
Recent Market Performance
The stock market witnessed sharp gains last week after three consecutive weeks of decline. Nifty rose by about 2% to 22,552.50, and the Sensex increased by 1.55% to 74,332.58. During the trading sessions between March 3-7, smallcap and midcap stocks saw significant buying interest. The Nifty Midcap 100 index surged 2.66%, and the Nifty Smallcap 100 index rallied 5.47%.
Domestic Market Outlook
Vinod Nair, Head of Research at Geojit Financial Services, stated that the domestic market had recovered from oversold levels. However, a decisive upward momentum will depend on the recovery in corporate earnings and the easing of tariff uncertainties.
Also Read: Indian Stock Market Rebounds with Nearly 2% Gains, Experts Maintain Positive Outlook
Sectoral Performances
Among the sectoral indices, Nifty Metal led the rally, surging by 8.61%. Other strong performers included Nifty Media (up 7.36%), Nifty PSE (up 7.36%), and Nifty Energy, which returned 5.90%.
External Factors Supporting Equities
The sharp decline in the US dollar index, lower crude oil prices, and the strength of the Indian Rupee against the greenback further supported equities during the week.
FIIs and DIIs Activity
On the institutional front, Foreign Institutional Investors (FIIs) recorded net outflows of Rs 15,501 crore in the cash segment, while Domestic Institutional Investors (DIIs) injected Rs 20,950 crore, offering stability to the market.
Technical Analysis and Future Resistance Levels
Puneet Singhania, Director at Master Trust Group, mentioned that Nifty rebounded nearly 2% this week from its 100-week EMA at 22,051 after hitting its lowest level since mid-May 2024. He indicated that the immediate resistance for Nifty stands at 22,700, aligning with the 21-day EMA, and a sustained move above this level could push Nifty toward 23,100.
The market remains cautiously optimistic, and investors will keep an eye on the upcoming inflation data and external developments that could shape the trading landscape in the coming week.
