Global Cues, Federal Reserve Meeting And West Asia Tensions To Guide Markets Next Week

Indian stock market ended the week on a weak note, with benchmark indices witnessing heavy selling for the third straight session on Friday as investors remained cautious ahead of key global developments.

The BSE Sensex dropped 1,471 points, or 1.93 per cent, to close at 74,563.92, while the Nifty 50 declined 488 points, or 2.06 per cent, to settle at 23,151.10.

The broader market also recorded sharp losses, with the BSE Midcap and Smallcap indices falling more than 2.5 per cent each.

Both benchmark indices also registered their third consecutive weekly decline. During the week, the Sensex lost 4,355 points, or about 5.5 per cent, while the Nifty slipped nearly 1,300 points, or 5.3 per cent, reflecting widespread selling across sectors.

Market participants are closely watching several global triggers that could influence the direction of the market in the coming week.

One of the most important events is the upcoming policy meeting of the Federal Reserve. The Fed will begin its two-day meeting on March 17 and announce its decision on March 18.

Investors will be monitoring signals on interest rates and the global economic outlook.

West Asia Tensions Add Uncertainty

Geopolitical tensions in West Asia are also keeping investors cautious. Donald Trump recently said the United States could launch additional strikes on Kharg Island in Iran following a recent attack, while Tehran has vowed retaliation.

Although there are indications that Iran may be open to negotiations, uncertainty around the conflict continues to weigh on global markets.

Oil And Gold Prices Under Watch

Crude oil prices will remain another important factor for investors. Global oil prices were trading slightly lower after the United States Department of the Treasury announced a 30-day waiver allowing countries to purchase Russian oil currently stranded at sea.

Precious metal prices are also being tracked closely. Gold prices declined on Friday and headed for their second straight weekly loss as rising crude oil prices continued to fuel concerns about global inflation.

Technical Outlook For Nifty

Experts said the Nifty index is currently approaching the 23,000 region, which is emerging as a crucial near-term support level.

“A sustained break below this zone could extend the decline toward 22,800–22,700, an area that has previously acted as a demand zone,” an analyst stated.

“On the upside, 23,500–23,800 is expected to act as the immediate resistance zone, and a decisive move above this range would be required to restore any positive momentum in the near term,” a market expert mentioned.

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