Last week witnessed a decline in the Sensex and Nifty. This week, the market direction will be determined by US Fed policy, global indicators, and FII activities. The support level will be 22,300 and the resistance level will be 22,630.
Stock Market Outlook: Domestic stock markets witnessed a continuous decline last week (March 10 to March 14). Both the Sensex and Nifty 50 fell by more than half a percent. Although the market showed some improvement at the beginning of March, investor sentiment weakened after the Holi holiday. Concerns about a global trade war, fueled by anticipated US tariffs and retaliatory tariffs from other countries, increased pressure on the market.
How did the market perform on Friday?
On Friday, domestic stock markets saw limited trading. The market declined for the fifth consecutive day due to selling in IT, auto, and realty stocks. The impact of the global trade war on the US economy also put pressure on Indian IT company shares.
- The BSE Sensex closed at 73,828.91, down 200.85 points or 0.27%.
- The NSE Nifty closed at 22,397.20, down 73.30 points or 0.33%.
- During the week, the Nifty 50 fell by 0.69% and the Sensex by 0.68%.
- Mid-cap and small-cap shares declined by 2.2% and 3.9%, respectively.
- The total market capitalization of BSE-listed companies decreased by ₹1,71,623 crore to ₹3,91,12,994 crore.
What will be the market direction this week?
According to Puneet Singhania, Director of Master Trust Group, rising concerns about the global trade war and US tariffs have impacted investor sentiment. Selling by Foreign Institutional Investors (FIIs) is also putting pressure on the market.
This week (March 17 to March 22), the market direction will depend on several major economic events:
- The US Federal Reserve's interest rate decision
- Updates on Donald Trump's tariff policy
- Foreign investor activity
- Domestic and global economic data
- Signals from US and European stock markets
Technical Outlook: What will be the future trend?
According to analysts, Nifty is still trading above the 100-week EMA (around 22,000), but below the 21-day EMA. This means that a "sell on rise" environment may persist in the market.
Support level: 22,300; further decline possible towards 22,000 below this level.
Resistance level: 22,630; upside potential to 22,800 above this level.
RSI indicator: Trading below 38, indicating a weak trend.
