Stock Market: There has been no change in the market trends in the domestic equity benchmark indices as the crisis in Europe continued for another week. Analysts have warned that volatility in the market may continue for this week.
Market participants will continue to focus on the Russia-Ukraine crisis and its impact on crude. Apart from this, on the domestic front, the eyes of the participants will also be on the results of the elections of five states- Uttar Pradesh, Uttarakhand, Goa, Punjab and Manipur on March 10.
According to a report in Economic Times, Ajit Mishra, VP Research, Religare Broking, said, “As well as banking, there is pressure on sectors/stocks heavily dependent on crude, while metals, IT and select energy stocks are looking to give some relief to the bulls. trying. We recommend buying into select stocks and keeping an eye on your leverage position till the market stabilizes.”
The following factors may remain on the radar of investors this week:
Ukraine war
Ukraine war: Russia’s attacks on Ukraine are intensifying and the situation remains volatile. Western countries have imposed restrictions, which has dealt a severe blow to the global markets. Supply constraints have dealt a severe blow to the energy market and have driven oil prices to the level of $120 a barrel.
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Inflation: This is another side effect of war. Analysts estimate that due to increase in fuel prices, the budget of the Government of India may worsen. Apart from this, wheat, palm oil and coal will also give a blow to the common man in the coming days. This could lead to cash crunch for investors.
state elections
State elections: The market will also keep an eye on the results of the upcoming state assembly elections on March 10. If the ruling party is defeated in the major states, it can have a negative impact on the market. Analysts believe that it will have limited impact.
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FII sell-off
FII outflow: In just three sessions of March, foreign investors have sold Rs 14,721 crore in equity markets. At the same time, this is significant compared to the Rs 70,000 crore sold in the last two months in the current calendar year. Analysts expect the sell-off to continue and have advised investors to be cautious.
macro data
Macro data: Investors will also keep an eye on the industrial production and manufacturing production figures for the end of January. Both these figures are expected to improve, as the economy has largely returned to the normal level before COVID, but if the data is not as expected, then it may remain negative on the market.
Technical Outlook
Technical Outlook: Nifty50 (Nifty50) remains under pressure and has closed negative. Volatility is high and the index is open with significant margins almost every day of the week.
Yesha Shah, Head (Equity Research), Samco Securities, said, “The major uptrend has resulted in a structural loss, so we reiterate our view that trade should be cautious with bearish trend. However, some upside associated with short covering cannot be ruled out, as geopolitical developments will continue to affect the markets going forward. Nifty50 has immediate resistance at 16,800 and support at 16,200.
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