Global cues, IIP data, foreign investors' flow among other factors for D-Street in holiday-shortened next week

Market next week: In the holiday-shortened next week, the Indian markets may continue to witness high volatility amid mixed indications, as per the analysts. The indices shall mainly be influenced by global cues along with Index of Industrial Production (IIP) data in the coming week amid a lack of key triggers, they said.

Moreover, the factors such as foreign investors' flow, rupee movement against the US dollar, and crude oil trend may also dictate the Indian equity indices in the coming week.

The coming week is a holiday-shortened one and we expect volatility to remain high citing mixed indications, Ajit Mishra, VP - Technical Research, Religare Broking said in his comment.

“On the data front, participants will be eyeing the IIP data scheduled on March 10. Besides, the performance of global indices, especially the US markets, will be in focus for cues,” Mishra also said.

“Rising US bond yields and macroeconomic numbers will keep the market mood subdued in the near term. Investments by FIIs, who are turning out to be small net buyers at the margin, and DIIs will be monitored,” Pravesh Gour, Senior Technical Analyst, Swastika Investment said in a note for the next week.

On the global front, the Bank of Japan will decide on interest rates, and US macroeconomic data (US nonfarm payrolls and the unemployment rate) will be scheduled for release on March 10, while on the domestic front, India’s industrial production data will also be unveiled on March 10, he added.

The markets this week remained choppy for yet another week but finally managed to end higher. The beginning was subdued, and bears were in control for most of the week however sharp rebound in the final session helped the benchmark to close in the green.

Eventually, the benchmark indices, Nifty and Sensex, ended closer to the week’s high at 17,594.30 and 59,808.97 levels.

“There are indications that the market has established a base and is prepared to rise, but US bond yield signals will be crucial. Technically, a 20-DMA of 17700 will be a key hurdle for the Nifty; above this, we can expect any meaningful strength in the market,” Parth Nyati, Founder at Tradingo said.