Global Trends, Investors' Trading Activity To Drive Markets Ahead, Say Analysts

The equity markets will remain closed on Monday to observe a holiday for the festival of Holi and then again mark the festival of Good Friday on Friday

The fluctuations in global oil benchmark Brent crude and currency movements would be monitored by investors as well.

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Global trends and trading activity of foreign investors will majorly drive markets in the week, analysts said. The stock market experts stated that the key equity benchmarks will be impacted by volatile trends as the monthly derivatives expire on Thursday. 

The trading week ahead will already by shortened due to the festivals in the week. The equity markets will remain closed on Monday to observe a holiday for the festival of Holi and then again mark the festival of Good Friday on Friday. 

Elaborating on the market movements ahead, Santosh Meena, Head of Research, Swastika Investmart Ltd, noted, “This week will be shorter due to market closure on both Monday for Holi and Friday for Good Friday. As a result, trading volumes may be lower with limited market cues. However, volatility remains a possibility as we approach the March F&O expiry and the financial year-end,” reported PTI.

Sharing the outlook, Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, said, “This week being a truncated week and the derivatives' monthly expiry, we might see some volatility while Nifty is likely to consolidate at higher levels. Also, the US GDP data and other key economic data would keep investors busy.”

Notably, the BSE Sensex gained almost 200 points or 0.25 per cent and the NSE Nifty50 climbed 73.4 points or 0.33 per cent. The fluctuations in global oil benchmark Brent crude and currency movements would be monitored by investors as well. The Indian rupee depreciated 48 paise to close at a record low of 83.61 against its American counterpart on Friday.

Commenting on the market movements, Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said, “Foreign institutional investors offloading shares coupled with a sharp fall in the currency level has been indicating that the road ahead for equity markets could be bumpy.”