Key triggers for next week: PMI, FIIs, and global economic data in market outlook

The upcoming week’s market outlook will be influenced by various factors, both domestically and globally. In India, the release of the Composite PMI Preliminary data for March on Monday will play a significant role in shaping market sentiment. This data combines the Manufacturing Output Index and the Services Business Activity Index to provide a comprehensive overview of economic performance.

On Friday, the Reserve Bank of India (RBI) will release data on Indian banks’ loan growth and deposit growth, providing insights into the country’s financial health. Meanwhile, global economic indicators such as the US New Home Sales MoM for February, UK GDP data for Q4, US Initial Jobless Claims, and US Corporate Profits (QoQ) for Q4 will also be released during the week.

In the previous week, the Indian stock market ended on a positive note, with Nifty closing 4.26% higher at 23,350.40 and Sensex closing 4.17% higher at 76,905.51. Financial stocks led this rally, with the Nifty bank index rising by 5.27% and the Nifty financial services index by 5.49%. The midcap and smallcap stocks also witnessed strong buying activity, with the Nifty Midcap index closing 7.8% higher and the Nifty Smallcap index with an 8.5% gain.

Foreign institutional buyers (FIIs) have turned into net buyers, with investments of Rs 5,819 crore in equity last week. Similarly, domestic institutional investors (DIIs) also showed interest, investing Rs 4,337.80 crore in equity. Puneet Singhania from Master Trust Group noted that Nifty recorded gains for all five sessions, rising by 4.26% weekly to reach a six-week high. The index closed above the 21-day and 55-day EMAs, creating a favorable environment for a buy-on-dip strategy.

Looking ahead, Singhania highlighted that the key support level is at the 55-day EMA at 23,050, with a breach potentially leading to a decline towards 22,700. On the upside, resistance at 22,500 is crucial, as a breakout could drive prices towards 22,800. The market outlook for the upcoming week will be heavily influenced by these key triggers, both domestically and globally, shaping investor sentiment and market direction.