Market Forecast: Key Indicators Like PMI, FIIs, and Global Economic Data to Shape Next Week

Synopsis

The market forecast for the upcoming week will be influenced by domestic and global factors such as PMI, FIIs, Indian bank loan growth, US new home sales, US jobless claims, and UK GDP data for Q4. Key indicators will likely shape investor sentiment and market movements.

Key Takeaways

Composite PMI data release on Monday is crucial.
FIIs are net buyers, investing a significant amount.
Financial stocks are leading the market rally.
Important resistance and support levels for Nifty have been identified.
Global economic data will play a key role in market sentiment.

New Delhi, March 23 (NationPress) The market outlook for the upcoming week will be influenced by various domestic and global factors including PMI, FIIs, growth in Indian bank loans and deposits, US new home sales, US Initial Jobless Claims, and the UK GDP data for Q4.

The preliminary data for India’s Composite PMI for March is due on Monday and is expected to play a pivotal role in shaping market sentiment. The Composite output in India combines the Manufacturing Output Index and the Services Business Activity Index.

The Reserve Bank of India (RBI) will release data on India Bank Loan Growth and India Deposit Growth on Friday.

On the international front, the US New Home Sales MoM for February is scheduled for Tuesday, while the UK GDP data for Q4 will be available on Friday.

Furthermore, the US Initial Jobless Claims along with US Corporate Profits (QoQ) data for Q4 will also be disclosed.

Last week, the Indian stock market ended positively. The Nifty index rose by 4.26 percent to close at 23,350.40, and the Sensex increased by 4.17 percent to finish at 76,905.51.

This bullish trend was primarily driven by financial stocks, with the Nifty bank index climbing 5.27 percent and the Nifty financial services index increasing by 5.49 percent.

From March 17-21, notable buying activity was observed in midcap and smallcap stocks, leading to a 7.8 percent gain in the Nifty Midcap index and an 8.5 percent rise in the Nifty Smallcap index.

Currently, foreign institutional investors (FIIs) have turned into net buyers, investing Rs 5,819 crore in equities last week. Concurrently, domestic institutional investors (DIIs) contributed Rs 4,337.80 crore to equity markets.

Puneet Singhania, Director at Master Trust Group, remarked, "The Nifty has seen gains in all five trading sessions this week, rising 4.26 percent weekly, reaching a six-week peak following the previous week’s downturn. The Nifty has closed above the 21-day and 55-day EMAs, which supports a buy-on-dip approach."

He further noted, "In the short term, critical support lies at the 55-day EMA at 23,050; a breach may lead to a decline towards 22,700. On the upside, resistance at 22,500 is significant, with a breakout potentially propelling prices towards 22,800."