News

Published: March 26, 2024
Updated: March 26, 2024

Market Outlook for Holiday Filled Week: Key Events and Analysis for the Week Ahead

Holiday-Shortened Trading Week:

This week, markets will see just three trading sessions due to public holidays. Equity markets will be closed on Monday for Holi and on Friday for Good Friday, creating a shortened trading week.

Major Events Driving Market Sentiment:

Several key events are poised to influence market dynamics throughout the week. These include the release of India’s Current Account and External Debt data, Government Budget Value, and the monthly expiry of Future and Options (F&O) contracts. Additionally, the Goods Trade Balance and unemployment data from the US will also impact market sentiment.

Economic Data Impact:

Investors will closely monitor economic indicators such as Current Account and External Debt data, Government Budget Value, Foreign Exchange Reserves, and Infrastructure Output figures. Of particular interest will be the Infrastructure Output data, reflecting a 3.6% year-on-year increase in January 2024.

US Market Indicators:

Traders will keep a keen eye on various US market data releases throughout the week, including the Chicago Fed National Activity Index, Dallas Fed Manufacturing Index, Redbook, CB Consumer Confidence, Initial Jobless Claims, Chicago PMI, and Baker Hughes Oil Rig Count, among others.

Market Analysis and Outlook:

Nifty ended the previous week on a positive note, with Asian and European stocks showing mixed performance. Confidence in the economy is growing, with investors anticipating upcoming interest-rate cuts. Despite redemptions in US equity funds, market sentiment remains optimistic.

Technical Outlook:

Nifty formed a large bull candle on March 22, closing the week higher by 0.33%. On weekly charts, it formed a high wave candle, indicating potential momentum. Key support and resistance levels suggest a possible rise towards 22297 and later 22527, with support expected around the 21860-21875 band. Bank Nifty witnessed strong buying activity but faced resistance at 47,000. Immediate support lies at 46,600-46,500, with potential for a bullish breakout above 47,000 leading to sharp short-covering rallies towards the 48,000 mark.

As markets navigate through a holiday-shortened week, investors remain focused on key economic indicators and market trends. The outlook suggests cautious optimism, with technical analysis pointing towards potential upward momentum in Nifty and Bank Nifty. Traders should remain vigilant amidst evolving market dynamics and global developments.