Market week ahead: Will Sensex, Nifty get respite from bears? key factors here

Sensex It closed at 59,463.93, down 141.87 points or 0.24%. While the Nifty 50 closed at 17,465.80, down 45.45 points or 0.26% on Friday.

In the week ended February 24, the Sensex fell 1,538.64 points or 2.52%, while the Nifty 50 fell 478.4 points or 2.67%. more than This week Rs 6.86 lakh crore of investors have been wiped out.

But home equity Since 17 February are in red. The last time the markets were in the green, which was on February 16, the Sensex declined 1,855.58 points and the Nifty 50 declined 570.05 points in six trading sessions. In these six days investors have earned more than 8.30 lakh crore decline in assets.

According to Ajit Mishra, VP of Technical Research, Religare Broking, the markets are trading under pressure due to weak global cues and have lost more than 2.5 per cent. The tone was negative from the start which worsened as the week progressed.

On indices, Mishra said, “Most sectoral indices traded in line with the benchmarks and closed lower, with fresh losses in metals and realty counters as well as persistent stress in banking and financial sector largely weighing on sentiment.” Broader indices closed as well. With cuts of about 2% each.”

Meanwhile, Vinod Nair, Head of Research, Geojit Financial Services, said, “The domestic market witnessed sustained selling during the week owing to a weak global market and persistent FII withdrawals.”

Economic indicators and global cues played a significant role in determining domestic equities.

Global stocks were cautious as better-than-expected US PMI numbers on strong jobs data and rising fears of an aggressive Fed action raised concerns, Nair said. The minutes of the central bank policy meeting also expressed concern over high inflation and commitment to bring inflation under control.

In addition, he said, the US 10-year Treasury yield moved closer to 4% in response to rising fears of rate hikes. Additionally, the greenback’s enthusiasm due to Fed’s accommodative comments and rising geopolitical tensions led to a rise in the dollar index. The re-emergence of the Cold War between the US and Russia has also raised apprehensions in the market.

Factors driving the market in the coming week:

Key economic data, especially India’s GDP data as well as global market performance will continue to form a large part of the sentiment in Indian markets. But at the same time auto stocks will also be in focus as companies in this sector will present their January sales figures.

Highlighting the key factors to drive the market, Mishra said, “With the start of the new month, participants will be eyeing important macroeconomic and high-frequency data during the week. Initially, GDP data and core sector data 28 are scheduled for February.

Further, he added, “S&P Global PMI Manufacturing and Services PMI data will be unveiled on March 1 and March 3, respectively. Auto sales numbers will also be unveiled starting March 1. Apart from domestic data, global market performance and movement will be on the participants’ radar.” But the price of crude oil and rupee will remain the same.”

What should investors do?

While the current pressures should be a short-term effect, Nair believes that the fear of sanctions against Russia and the degree of its impact on the economy, particularly food and oil exports, are raising concerns.

On economic growth, Nair said, “India’s Q3FY23 GDP growth, which is due to be released next week, is estimated to moderate from 6.3% in the previous quarter.”

Mishra said that this week’s fall has almost wiped out the gains of the last three weeks and the Nifty has reached close to the budget day low ie 17,353.40.

He believes that there could be a breather in the coming week initially, but the tone is likely to remain negative with the next important support at 17,100.

Furthermore, a correction in the US markets could add to the pessimism. Mishra said that amid all this, most sectors are facing the heat, but the continued poor performance of the banking and financial sector will remain a major concern.

For investors, Mishra said, “Thus we recommend to continue with “sell on growth” approach till Nifty shows some signs of reversal.”

Disclaimer: The views and recommendations given above are of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.