For medium- to long-term investments, market experts advise investors to adhere to concentrating on reputable businesses with appealing valuations.
Indian stock market: The Indian stock market experienced a weekly loss over the last week due to its continued confinement inside a small range. Significant foreign capital outflows and rising global trade tensions were the main causes of this decline, which has hampered hopes for a long-term market rebound.
The 30-share BSE Sensex lost 200.85 points (0.27 percent) at 73,828.91 on Thursday, reversing its early gains. This was the sixth straight session that the index has lost money as a result of selling in the IT, real estate, and auto sectors. The NSE Nifty also fell 73.30 points, or 0.33 percent, to close at 22,397.20.
“Markets concluded the week little down, suggesting a consolidative tone, despite contradicting global signs. The benchmark indices, the Nifty and the Sensex, were range-bound throughout, closing with losses of more than half a percent at 22,397.2 and 73,828.91, respectively, according to a note written by Ajit Mishra, SVP, Research, Religare Broking Ltd.
On the sectoral front, the majority of indices saw a decline, with the largest losses being IT, auto, and real estate. Pharma and finance, however, were able to maintain their position. The selling pressure also affected smaller markets, with midcap and smallcap indices dropping between 2.15 and 4 percent.
Key market drivers for next week
On March 19, everyone will be watching the U.S. Federal Reserve’s monetary policy review. The possibility of an interest rate drop is dubious because of persistent trade tensions, even in the face of recent positive inflation figures. Market expectations will be significantly influenced by the Fed’s remarks.
Market players at home are keeping a careful eye on the activities of Foreign Institutional Investors (FIIs). Following a brief lull, foreign investors’ selling pressure has increased. In 2025, FIIs withdrew nearly ₹1.1 lakh crore from Indian stocks, which helped the Nifty index fall 4% so far this year. Any increase in FII inflows could give the markets much-needed respite.
Technical Outlook for Nifty next week
Mishra claims that the Nifty is still in a consolidation phase and is trading between 22,250 and 22,650.
“The index may retest 21,800 if there is a breakdown, but a strong breakout could push it to 23,100 or higher,” he continued.
Speaking about the prospects for the Bank Nifty, Mishra stated, “The banking industry has demonstrated resilience, but in order to recover and test the 50,000 mark, the Bank Nifty requires a firm closing above its 20-day exponential moving average around 48,600. Conversely, a violation of 47,500 might cause a significant correction.
What should be your trading strategy for next week?
For medium- to long-term investments, market experts advise investors to adhere to concentrating on reputable businesses with appealing valuations.
Because of the recent recovery and the lightening of valuations, we are still cautiously optimistic about the market. In a research, SBI Securities advised investors to continue with reputable companies with encouraging valuations for medium- to long-term investment horizons.
In addition, Ajit Mishra of Religare Broking suggested that investors concentrate on index option techniques until a distinct breakout occurs amidst continuous market consolidation.
It is recommended that traders concentrate on index option methods until a distinct breakout appears, considering the current market consolidation. At the same time, stock-specific approach remains sensible, with a preference for financials, oil, and metals on the long side, while IT and auto sectors may continue to underperform.
Furthermore, in larger markets, prudence is necessary because increased volatility may result in even worse underperformance. “Aggressive positioning in mid- and small-cap stocks is discouraged,” he stated.
