Market forecast: What to expect this week?

6 Feb 2023 , 11:10 AM

RBI’s interest rate announcement will come later this week. The expectation is that it will increase repo rate by 25 basis points or 0.25%. Indian equity markets are likely to see a mixed week. The budget has injected some positivity by reducing income tax. This will increase disposable income of people. This in turn may give some boost to the economy. 

On the global front, European Centra Bank raised its benchmark interest rate by 0.5% to 2.5%. Bank of England also raised its benchmark interest rate by 0.5% to 4%. This is the highest level of interest rate in UK in more than a decade. IMF has forecasted that world GDP will grow by 2.9% in 2023. It has forecasted that global inflation will come down to 6.6% in 2023, from 8.8%. 

Euro zone’s economy expanded by 1.9% in the December quarter.  GDP growth in 2022 of Euro zone stood at 3.5%. Consumer price inflation in Euro zone slowed down to 8.5% in January from 9.2% in December. This decline happened mainly because of decline in energy prices. A milder winter also helped in bringing down energy prices. Demand for energy for heating slowed down.

Intel posted a net loss of $ 664 million in the December quarter. The company saw significant fall in the demand for its chips. Oil & gas companies continued to post stellar profits on the back of high energy prices. Exxon Mobil posted a profit of $56 billion in 2022. Chevron posted $37 billion in profit. Shell posted $40 billion in profit.

On the technical front, Nifty 50 is likely to see support at 17400, this week. Resistance is likely to be seen at 18000.

A Buy call is being given for this week on the stock of TCS. Target price is Rs 3660. Stop Loss is Rs 3330.

A Buy call is also being given for this week on the stock of HCL Technologies. Target price is Rs 1215. Stop Loss is Rs 1098.