Following the sharp rebound in the global markets, domestic indices Sensex and Nifty took a breather in hopes of relief from the global banking turmoil. The 30-share BSE Sensex rose 355.06 points or 0.62 per cent to settle at 57,989.90 on Friday. The broader NSE Nifty gained 114.45 points or 0.67 per cent to end at 17,100.05.
For fresh cues, market participants will keenly watch out for next week’s US Federal Reserve monetary policy outcome and foward-looking guidance. Crude oil and the Indian currency will also play a crucial role in market movement. Apart from this, the Japanese inflation rate for February will be announced on 24 March, 2023.
The next US monetary policy meeting is scheduled for 21-22 March. The US Fed is expected to approve a quarter-percentage-point interest rate increase next week even with turmoil in the banking industry and uncertainty ahead, according to market experts.
“In absence of any major domestic event, the focus would be on the upcoming FOMC meet scheduled on March 21-22. Besides, movement in crude and trend of foreign flows will also be in focus for cues,” said Ajit Mishra, VP – Technical Research, Religare Broking Ltd.
“Markets may take a breather initially however the upside also seems capped. Nifty could face hurdles around the 17,250-17,400 zone while the 16,600-16,800 zone would provide the needed cushion, in case the situation deteriorates further,” Mishra said.
Since we’re witnessing a mixed trend across sectors, Mishra said that traders should continue with stock-specific approach, with a focus on overnight risk management.