Trading may remain volatile; economic data will be watched
Mar 03, 2023 05:42 PM | Source: capitalmarket.com
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The stock market may remain choppy amid fears the Federal Reserve will keep raising interest rates to combat sticky inflation. Foreign fund outflows and rising bond yields will restrict equity rally in the near term. Investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) will be monitored.
In the derivatives market, the Nifty 50 index option chain for the 29 March 2023 expiry showed maximum Call open interest (OI) of 69,545 contracts at the 18,000 strike price. Maximum Put OI of 94,390 contracts were seen at 17,000 strike price. The data suggests that Nifty 50 index is likely to hover in 17,000 to 18,000 band in the near term.
On the economic front, India's industrial production data for January 2023 will be unveiled on Friday, 10 March 2023. Industrial production in India increased 4.3% year-on-year in December of 2022, easing from an upwardly revised 7.3% rise in November.
India's manufacturing production data for January 2023 will also be declared on the same day. Manufacturing production in India increased 2.60% in December of 2022 over the same month in the previous year.
On the global front, China will disclose balance of trade data for January-February on Tuesday, 7 March 2023.
US balance of trade for January will be disclosed on Wednesday, 8 March 2023.
China will unveil inflation data for February on Thursday, 9 March 2023. The country's annual inflation rate rose to 2.1% in January 2023 from 1.8% in December. This was the highest reading in 3 months.
Bank of japan (BoJ) will decide on interest rate on Friday, 10 March 2023. BoJ maintained its key short-term interest rate at -0.1% and that for 10-year bond yields around 0% during its January meeting by a unanimous vote.
US non farm payrolls and unemployment rate for February will be disclosed on Friday, 10 March 2023.
The US economy unexpectedly created 517,000 jobs in January of 2023, the most since July, and way above an average monthly gain of 401,000 in 2022, easily beating market forecasts of 185,000.
The unemployment rate in the US inched lower to 3.4% in January 2023, the lowest level since May 1969 and below market expectations of 3.6%, as the number of unemployed people declined by 28 thousand to 5.69 million and the number of employed increased by 894 thousand to 160.1 million.