Market forecast - What to expect this week?

8 Aug 2022 , 11:58 AM

Markets will be impacted by the movement of rupee this week. Any further decline in rupee’s value will have a negative impact on market sentiments. Any rally that will take place will be of a very short term and will be followed immediately by profit booking. US job numbers last week have given some hope that the US economy may not be in recession or may not be entering recession in the near future. But these numbers are too early and too limited to say anything.  Walmart has issued a profit warning saying that higher food and fuel prices are resulting in consumers spending less on other items. Digital advertising at Meta came down year-on-year in the June quarter by 1%. All these developments point to the continued economic risks. A recession in US economy will be a highly negative factor for Indian equity markets.

On the technical front, Nifty 50 is likely to trade in a sideways, range bound manner this week. Support is seen at 17100 level. Resistance is seen at 17750 level. Banking stocks may rise further. Support for Bank Nifty is expected at 37250; resistance at 38500. IT stocks are expected to rise further this week.

A Buy call is being given on the stock of Lemon Tree Hotels. Target price is Rs 81; Stop Loss is Rs 68.

A Buy call is also being given on the stock of ICICI Prudential. Target price is Rs 628. Stop loss is Rs 555.