Traders to look for global cues for direction next week

Prateek Jain, Director at Hem Securities

"In the coming week, traders will look for global clues and the movement of rupee against the dollar for direction next week.

The US Federal Reserve's two-day monetary policy meeting is scheduled on March 20-21. Strengthening labor market and a steady increase in price pressures could pave the way for the Federal Reserve to raise interest rates in upcoming meeting. The US central bank has forecast three rate increases for this year, but there are also expectations that it will raise its projection to four hikes at the meeting.

With US 10yr bonds still hovering around four-year high level. Investors are keeping a close watch on Federal Reserve's policy action next week, which is construed as negative. Also, Pesident Donald Trump's announcement to levy tariffs on Chinese production could trigger a trade war could hurt investors sentiments.

On the technical front, Nifty is precariously poised above the 200-DMA of 10,100, while Bank Nifty is managing to currently hold above its yearly mean of 24,500. The weak structure will be negated only if Nifty manages to break above 10,480 mark, till then it is advisable to remain cautious with long positions".

Source : Equity Bulls

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