MUMBAI: The market outlook for next week will be guided by several domestic and international factors such as India's retail inflation data, FIIs activities, dollar to Rupee activity and Trump tariff policy.
India's retail and wholesale inflation data will be released on March 12, and the stock market will be closed on March 14 on account of Holi.
Last week, the stock market witnessed sharp gains. After three consecutive weeks of decline, Nifty rose by about two per cent to 22, 552.50, and the Sensex rose by 1.55 per cent to 74, 332.58.
Between the March 3 - 7 trading sessions, buying was seen in smallcap and midcap stocks. During this period, the Nifty Midcap 100 index surged 2.66 per cent, and the Nifty Smallcap 100 index rallied 5.47 per cent.
Vinod Nair, Head of Research, Geojit Financial Services, said that the domestic market recovered from its oversold levels; however, a decisive upward momentum will be based on the recovery in corporate earnings and an ease in tariff uncertainty.
Among the sectoral indices, metal, energy, media and PSE performers of the week. Nifty Metal surged by 8.61 per cent, Nifty Media railed 7.36 per cent, Nifty PSE increased by 7.36 per cent, and Nifty Energy gave a return of 5.90 per cent.
Meanwhile, a sharp decline in the US dollar index, lower crude oil prices, and strength in the Indian Rupee against the greenback provided further support to equities.
On the institutional front, Foreign Institutional Investors (FIIs) recorded net outflows of Rs 15, 501 crore in the cash segment, whereas Domestic Institutional Investors (DIIs) injected Rs 20, 950 crore, offering stability to the market.
Puneet Singhania, Director at Master Trust Group, said, "Nifty rebounded nearly two per cent this week from its 100-week EMA at 22, 051 after hitting its lowest level since mid-May 2024. The immediate resistance stands at 22, 700, aligning with the 21-day EMA, and a sustained move above this level could push Nifty toward 23, 100."