Market to remain indecisive this week

Market to remain indecisive this week

This week too, the domestic stock markets will continue to be influenced by global trade wars, volatility in global stock markets and crude oil price fluctuations. Thus combined with domestic factors such as the stress in the banking sector, direction of foreign fund flows and the rupee's movement against the US dollar, will also impact stock movements.

Technical charts showed a bearish outlook for the National Stock Exchange's (NSE) Nifty. The Nifty remains in downtrend and further downsides are likely early next week once the immediate supports of 9,952 points are broken. Immediate resistance is now at 10,227 points.

The key Indian equity indices – the BSE  Sensex and the NSE Nifty50 -- closed last week at 5-month low levels on the back of trade protectionist measures, apart from the ongoing turmoil in the domestic banking system as well as the uncertainty on the political situation in the country. The Sensex lost 579.46 points or 1.75 per cent to 32,596.54 points -- its lowest closing level since October 23, 2017. Similarly, the Nifty ended below the psychologically important 10,000-mark level and closed last week's trade at 9,998.05 points -- down 197.1 points or 1.93 per cent -- its lowest closing level since October 11, 2017.

The week is a short week with three trading sessions as Thursday and Friday are public holidays on account of Mahaveer Jayanti and Good Friday. Besides there is F & O expiry.

Investors will continue to keep close eye on further actions byDonald Trump and the reaction of the Chinese government. In addition, parliamentary proceedings, macro-economic points like Index of Eight Core Industries (ECI) figures, along with the country's fiscal deficit numbers up to February and its external debt data will be keenly watched by investors. 

The near-term outlook for the equity market remains unclear. While traders should remain cautious, the decline in good fundamental stocks would offer buying opportunities for long-term investors. Once the new financial year begins, people may take a fresh view on India. The markets may go through the pain for a few more sessions. Though markets are looking bad, corporate earnings are improving. Markets will ultimately determine which companies are doing well, which companies are expanding. This quarter when the results come out, the markets will make a decisive move.