Stock market today: Factors to drive Sensex, Nifty. Key levels to watch

Stock market today: Factors to drive Sensex, Nifty. Key levels to watch

Extending gains for fourth straight day, equities edged up on Friday with Nifty 50 index closing 0.21% higher at 16,630, while the BSE Sensex rose 0.15% to 55,550 points. Both the indexes gained more than 2% for the week, logging their first weekly gain in five.

Investors await key announcements including India’s inflation data, US Fed meet, and the developments on the Russia-Ukraine conflict this week. Meanwhile, SGX Nifty indicates a choppy start to the Indian stock markets today.

“There are still uncertainties on the Russia-Ukraine issue while we will have an important FOMC meeting outcome on 16th March amid hyperinflation. Amid all, crude oil prices and FIIs’ behavior will be important triggers to drive the Indian market in a truncated week,” said Santosh Meena, Head of Research, Swastika Investmart.

The market will focus on the reduction of commodity prices & diplomatic development between Russia & Ukraine. If these global trends turn positive, the performance of the Indian market will be good or else it may get choppy. The market will also focus on inflation data to be released in India & US, and US Fed & BoE meeting is scheduled,” said Vinod Nair, Head of Research at Geojit Financial Services.

“We feel participants should continue with a cautious stance until the prevailing geopolitical tension further eases. Markets are offering opportunities on both sides however overnight risk and excessive volatility during the day are not easy to handle. The prudent approach is to focus more on risk management aspects,” said Ajit Mishra, VP Research. Religare Broking.

Index levels to watch

On the index front, “a decisive close above 16,800 could help Nifty inch towards the 17,200 zones. In case of decline, 16,000-16,200 zone would act as a cushion. Participants should focus on metal, IT, pharma, and select energy stocks for long trades while others may continue to trade mixed,” Mishra added.

“The short term uptrend of Nifty remains intact with high volatility. Having placed near the crucial overhead resistance of around 16800-17000 levels, there is a possibility of further consolidation movement for the short term. Weakness from the highs can’t be ruled in the coming session. Immediate supports to be watched at 16450 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.