The Indian stock market is expected to tread volatile paths in the trading session of March 26, 2024. Market movement will likely be influenced by various global trends, particularly the performance of U.S. equities, and the trading activity of foreign institutional investors (FPIs).
Market Performance Overview
The Nifty 50 and Sensex indices have displayed significant volatility lately. The Nifty 50 index is up only 100 points in the March Future & Options (F&O) series so far. Despite appearing flat, the price action of this series has been anything but stable.
The Sensex and Nifty Bank indices, after falling below their intermediate supports, managed to reverse higher from their lows, recovering all their losses and closing the week marginally higher.
Global Market Influence
Global market trends have been playing a significant role in shaping the direction of the Indian stock market. The U.S. stock market, for instance, witnessed a retreat after the S&P 500 Index hit multiple record highs, raising concerns about the rapid advancement of the market.
Foreign Institutional Investors’ (FPIs) Influence
FPIs have pumped in a net investment of over ₹38,000 crore in Indian equities this month, primarily driven by favorable shifts in the global economic scenario and a robust domestic macroeconomic outlook. This resurgence in FPI investment activity comes after a modest investment of ₹1,539 crore in February and a massive outflow of ₹25,743 crore in January.
Market Trends for the Week
This week will witness only three trading sessions, including the F&O expiry session on Thursday. According to market analysts, key equity indices may face volatile trends amid the monthly derivatives expiry.
Expert Market Predictions
According to Vaishali Parekh, Vice President ” Technical Research at Prabhudas Lilladher, the Nifty 50 index has found strong support at the 50-EMA zones at the 21,870 level. The index needs to sustain above the 22,000 level to maintain the upward move further. The overall market trend could further improve if the Nifty 50 index breaches the 22,200 level on a closing basis.
Stocks to Keep an Eye On
In light of the current market scenario, Parekh recommends keeping a close watch on three stocks: Canara Bank, Bharat Forge, and BEL.
While the market may face volatility due to global trends and FPI activity, analysts anticipate that maintaining above certain levels could lead to an upward market trajectory. As the week unfolds, investors are advised to keep a close eye on these trends and make investment decisions accordingly.