As 10-year treasury yields drop from recent highs, US stocks rise on the global market, with gains across all sectors. The Dow Jones gained 1.17%, the Nasdaq gained 1.97%, and the blue-chip S&P 500 closed 1.61% higher. On the other hand, FPIs continued to sell in the domestic market in early March, selling a total of 6544 crores from March 1 to March 4. As a result, global investors’ attention in domestic equity markets diminished due to concerns about an economic slowdown caused by high inflation and contractionary monetary policies as RBI is expected to hike the repo rate further. According to experts, the markets will closely follow global cues over the coming week.
Source:- Times now
FPI trend this weekDr.V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said FPIs continued selling in early March too. However, the data ( NSDL) shows a net FPI figure of u20b98902 crores up to 4th March. This discrepancy is due to the US-based investment firm GQG making a massive investment of 15446 crores in four Adani stocks. Excluding this, FPIs continued to be sellers to the tune of 6544 crores from March 4th. Excluding the GQG investment, FPIs have sold equity to the tune of 41169 crores in 2023. FIIs are likely to sell at higher levels since the US 10-year bond yield is at 4% and this is an attractive risk-free investment for FPIs. FPIs have been buyers in financials, capital goods, and autos and sellers in Oil & Gas and metals.
Weekly market outlookRatnesh Goyal, Sr Technical Analyst, Arihant Capital said u201cOn the daily chart of Nifty, it is trading near the support level of 200 SMA, and on the weekly chart, it is taking support from the lower channel. This indicates that the market is now taking support from its lower level, and we can see some stock-specific action. In the coming trading session, if Nifty trades above the 17,650 level, if it starts to trade above, then it can touch the 17,850-18,050 levels. On the downside, the support is 17,500, and if it starts to trade below then it can test 17,350 and 17,100 levels.\u201cOn the daily chart of Bank Nifty, it is trading near its 50-day SMA level. On the weekly chart, we observe a bullish candlestick formation. This indicates that Bank Nifty can outperform Nifty. In the coming trading sessions, if it trades above 41,350, then it can touch 41,600 and 41,800 levels. However, the downside support comes at 40,900, and below that, we can see 40,700u201340,400 levels, said Ratnesh Goyal.
Rahul Ghose, Founder & CEO u2013 of Hedged, an algorithm-powered advisory platform said u201cThe Nifty Index is in a sideways trend with a very broad-based range in between 17250 on the downside and 18220 on the upside. Till either of these levels gets taken out, markets will keep yo-yo-ing both on the upside and the downside. Also, it is important to note that there is a near-term resistance for the Nifty at 18040 as well, If the Nifty manages to close above this level with a bullish candlestick formation, the likelihood of 18220 getting taken out increases drastically. Further talking about the trend, the likelihood of an upside move is more imminent than a downside move as the index has formed a nice circular base and is also moving up strongly from the lower Bollinger band on the weekly chart. Source: CNBC- TV 18Stocks to remain in focusRahul Ghose, Founder & CEO u2013 of Hedged said two stocks to watch out for in the short term would be:
1) Reliance: The Reliance chart is looking good for the short term. Prices closed strong on Friday and the stock has made a nice base near the lower Bollinger bands here as well. The stock is also reacting from a weekly demand zone and is breaking out from a divergence pattern on the momentum indicators. One can hold this for a target of 2495 in the short term.
2) Canara bank: The stock has made a lovely positive divergence on the weekly chart and closed last week with a bullish engulfing candlestick pattern. One can look to enter this stock around the 290 levels, keeping a target in mind at 320, The SL would be at 275. The Canara bank stock is also looking bullish as the ADX on the weekly chart is cooling off from the recent downturn that it was in, and one can see the red line trying to fall below the green line as well on this indicator.
Ratnesh Goyal, Sr Technical Analyst, Arihant Capital said IT stocks have seen some consolidation so they will remain in focus next week. Other segments in focus will be midcap and small cap. Below are the stock recommendations by Ratnesh Goyal.
3. Hariom Pipes may see an upside till the target Rs.500/550 with a stop loss of Rs. 360.
4. TDS Power: Buy for the target Rs.175/190 with a stop loss of u20b9135.
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