Market forecast – What to expect this week?

10 Apr 2023 , 01:24 PM

Indian equity markets will breathe some sigh of relief this week after the RBI paused its successive interest rate hikes. Other central banks too seem to be putting a pause on interest rate hikes. Australian Central Bank is the most recent one that has put brakes on  hikes after 10 consecutive rate hikes. It has kept interest rate in Australia unchanged at 3.6% in its latest monetary policy announcement. These interest rate hikes were having little impact on controlling inflation. But they were hurting the economy by making interest sensitive consumption and investment more expensive.

Inflation in Euro zone has come down significantly in March to 6.9% from 8.5% in February. But core inflation in March touched a new high of 5.7%. Core inflation does not include food and energy prices because of their volatility. 

A negative factor for Indian equity markets this week will be the decision of OPEC+ to cut oil output by about 1.15 million barrels per day. This will push up oil prices. 

On the technical front, support for Nifty 50 this week is likely to be at 17460. Resistance is likely to be at 17790. 

A BUY call is being given on the stock of Tata Motors for this week. Target price is Rs 460. Stop Loss is Rs 424.

A BUY call is also being given on the stock of Bajaj Finance for this week. Target price is Rs 6250. Stop Loss is Rs 5760.