Market forecast - What to expect this week?

7 Nov 2022 , 11:27 AM

Markets are likely to see a week where there will be no clear trend. Swings can be seen because of short term value buying and profit booking. Intra-day trade sentiments are more likely to drive the markets this week than long term investment perspective. What is working for Indian equity markets is the continued buying by foreign portfolio investors. Results of US midterm elections will start coming on November 9th. This may have some impact on Indian equity markets too.

On the global front, technology stocks continue to see some battering in US equity markets. Oil companies, on the other hand, are posting record-breaking profits. ExxonMobil posted its highest ever net profit of $ 19.7 billion in the September quarter. Stocks of oil and gas production companies and refining companies may also see gains in Indian equity markets. Bank of England has raised interest rate to 3%. This is the highest level of interest rate in the country since 1989. Things got worsened on the inflation front, in Euro zone. Inflation in October in Euro zone touched 10.7%.

On the technical front, Nifty 50 is likely to see resistance at 17770 and support at 18370 level. Banking stocks, pharma stocks, and metal stocks may remain bullish this week.

A Buy call is being given on the stock of State Bank of India for this week. Target Price is Rs 635. Stop loss is Rs 570.

A Buy call is also being given on the stock of Vedanta Ltd for this week. Target Price is Rs 345. Stop Loss is Rs 308.