Market forecast - What to expect from the markets this week?

12 Sep 2022 , 12:25 PM

Indian markets may remain more in the positive territory than in the negative one this week. What has started working in the favor of Indian equity markets is that Foreign Portfolio Investors are continuing to be net buyers. This is happening in spite of rising US interest rates. FPIs are now assuming that Indian economy will perform better than other major economies such as China and those in the Euro zone in the near and medium term. Oil prices are coming down as global economic slowdown worsens. Dollar remains strong against major currencies. European Central Bank has raised interest rates by 0.75%. Canadian central bank has also raised interest rate by 0.75%. 

On the technical front, support level for Nifty 50 this week is likely to be at 17500. Resistance is likely to be at 18000. Bank Nifty is likely to see support at 39600. Resistance can be seen at 41300. Based on technical indicators, IT stocks are likely to do well this week.

A BUY call is being given on the stock of KPIT Technologies for this week. Target price is Rs 610. Stop loss is Rs 550.