Market Next Week: Macro data, global cues, FII flows among other factors to influence Indian indices, analysts say - check technical view

The Indian markets are likely to be influenced by domestic macroeconomic data, including the US Fed policy meeting in the coming week, several analysts believe in their expectations. They also expect that factors like foreign flows, the rupee, and crude oil movement may also drive indices.

The coming week is going to be critical as we have important events and data lined up, Ajit Mishra, VP - Technical Research, Religare Broking said. “On the domestic front, participants will be eyeing IIP (Index of Industrial Production), CPI (Consumer Price Inflation), and WPI (Wholesale Price inflation) scheduled during the week.”

Globally, the US Fed meet, and US CPI inflation will also remain on their radar for cues, the VP - Technical Research, Religare Broking said in his expectations.

Similarly, Apurva Sheth, Head of Market Perspectives, at Samco Securities said that the upcoming week has a host of important events lined up.

She added, “The three large economies—the US, the UK, and India—will each disclose their inflation rate. As a result, the world's markets will be closely monitoring these numbers and hoping for an improvement.”

Additionally, the US and UK will be making their interest rate announcements, which will keep the global markets active, Sheth in her expectations comment for markets next week.

Technical View

We’re trading largely in line with the global trend and indications are in the favour of further consolidation, Mishra said. “However, a fall below 18,300 in Nifty could broaden the range with the next crucial support at 18,000. And, to regain strength, it should decisively reclaim the 18,750 zone.”

Meanwhile, traders should focus on selecting stocks based on the sectoral trend wherein we expect the positive tone to continue in banking and FMCG while pharma and IT may continue to trade lackluster, the market analyst at Religare Broking adviced.

Besides, it’s prudent to keep the leveraged positions hedged especially the overnight trades citing the scheduled events, Mishra said in his comment advising investors. 

Similarly, Rohit Agarwal, Executive Vice President & Equity Fund Manager, Kotak Life Insurance said, “The markets are likely to take a breather in the short term after delivering very good returns post Covid. They are likely to see some drawdown or some time correction.”

Nifty has given positive returns Year-To-Date, and if it doesn’t give up all those gains by the end of this month, 2022 will end up as being the 7th consecutive calendar year of NIFTY delivering positive gains, Agarwal said, adding that would be the longest ever streak since Nifty’s inception.