Market forecast : What to expect this week?

13 Feb 2023 , 11:01 AM

Indian equity markets may see a mixed week. US Consumer Price Inflation data for January will come on Tuesday. This will affect market sentiments. Revisions by US Bureau of Labor Statistics show that month-on-month consumer price inflation in December stood at 0.1%. Before this revision, it was stated that month-on-month consumer price inflation in December stood at -0.1%. Similarly, month-on-month inflation data for November has been revised upwards to 0.2% from 0.1% and for October to 0.5% from 0.4%. These upward revisions show that inflation rate is not slowing down as expected in spite of the hawkish stand of US Federal Reserve. This hawkish stand has triggered a wave of successive interest rate hikes by the US central bank.

Globally, UK’s FTSE 100 index continues its stellar run in 2023. The index has risen by 4.35% Year-to-date (YTD). A number of energy companies that are part of FTSE 100, such as BP, are posting record profits. With more foreign equity markets picking up, Indian equity markets are going to see increased competition from them, in terms of attracting foreign portfolio investments.

At the technical level,  Nifty 50 is likely to see support at 17600 and resistance at 18050 level this week. 

A BUY call is being given on the stock of TCS for this week. Target price: 3690. Stop Loss: 3410.