Bigger Impact Expected In The Market Next Week?

Markets Overview

Geopolitical tensions are high as the Iran war sits at its edge, while the AI sector in the United States faces a standoff between the administration and philanthropic interests. This conflict could have a major impact on global tech stocks in the coming week. It remains uncertain how India will react, but there is a growing narrative that the Indian market acts as an anti-AI trade.

Looking at the charts, the Nifty dropped 1.5% this week, with the entirety of that decline occurring on Friday. The market is close to filling the gap created by previous US deal news, and the overall structure has certainly weakened.

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The final trading day of the month, February 27th, resulted in a disappointing closing for the market. An extreme sell-off occurred during the last half hour of the session. This sharp cut in the final hour may have been triggered by the week's end, month-end adjustments, or perhaps rebalancing by large institutions. While the exact numbers will be analyzed later, the downward movement is clear.

This pressure is mirrored in the US markets, which is having a rub-on effect across Asia. Additionally, Foreign Institutional Investors (FIIs) recorded a significant sell-off yesterday after a long interval, making those upcoming figures critical to monitor.

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