Key Points
India's March Composite PMI and bank growth data crucial for market direction
India's Composite PMI Preliminary data for March is to be released on Monday and will be crucial for driving market sentiment. In India, Composite output refers to a weighted average of the Manufacturing Output Index and the Services Business Activity Index.
The India Bank Loan Growth and India Deposit Growth data will be released by the Reserve Bank of India (RBI) on Friday.
On the global level, the US New Home Sales MoM for February is set to be released on Tuesday and the UK GDP data for Q4 is scheduled for release on Friday.
Additionally, the US Initial Jobless Claims and US Corporate Profits (QoQ) data for Q4 will also be released.
Last week, the Indian stock market closed in the green. Nifty closed 4.26 per cent higher at 23,350.40 and Sensex closed 4.17 per cent higher at 76,905.51.
This rally was led by financial stocks. Nifty bank index rose 5.27 per cent and Nifty financial services index rose 5.49 per cent.
During the March 17-21, strong buying was seen in midcap and smallcap stocks. The Nifty Midcap index closed 7.8 per cent higher and the Nifty Smallcap index closed with an 8.5 per cent gain.
Now foreign institutional buyers (FIIs) have become net buyers. Last week, FIIs invested Rs 5,819 crore in equity. At the same time, domestic institutional investors (DIIs) invested Rs 4,337.80 crore in equity.
Puneet Singhania, Director at Master Trust Group said, "Nifty gained for all five sessions this week, rising 4.26 per cent weekly and reaching a six-week high after the previous week's decline. Nifty ended above the 21-day and 55-day EMAs, making it favourable for a buy-on-dip strategy."
"In the near term, key support is at the 55-day EMA at 23,050, with a breach possibly triggering a decline toward 22,700. On the upside, resistance at 22,500 remains crucial, with a breakout potentially driving prices toward 22,800," he added.
