Market forecast – What to expect this week?

20 Feb 2023 , 12:27 PM

Indian equity markets will be driven by global cues this week.  Market participants are likely to tread cautiously this week. The continued hawkish stand of US Federal Reserve will continue to be a worry for Indian equity markets. A recent paper by Reserve Bank of India has said that any interest rate hike and monetary tightening by US central bank will hurt the Indian economy.

On the global front, inflation remains a worry for countries around the world. Inflation in UK in January stood at 10.1%. Ford has said that it will cut down 3800 jobs in its European production facilities. Mining company, Glencore has posted a record high annual profit of $34 billion in 2022. The profits were driven by higher coal production. Airbnb has also posted a profit of $1.9 billion in 2022. This is the first time that the company has posted profits. Its results indicate to the recovery that the tourism and hospitality sector saw in 2022, after being devastated by Covid lockdowns and restrictions for two years.  Japanese economy grew just by 0.6% on year-on-year basis in the December quarter.

On the technical front, support is seen for Nifty 50 at 17720, this week. Resistance is seen at 18135. Stocks of Gujarat Fluorochemicals and ONGC are expected to go up this week.