Market forecast – What to expect this week?

17 Apr 2023 , 02:23 PM

This week Indian equity markets will be affected by the corporate results that will come in the week. IT companies that have declared their results till now, such as Infosys, have performed below expectations in the March quarter. If more such below-expectation results come, then Indian equity markets may see some decline. Selling will take place in IT stocks in that case as their valuations will see correction.  With a recession imminent in US market, IT companies are likely to see headwinds in the coming months. Clients based in US and Europe may cut down their IT spending.

On the global front, inflation in USA came down to 5% in March. However, core inflation, which does not include the volatile food and energy prices, increased to 5.6%. IMF has lowered its forecast for global GDP growth to 2.8% in 2023. Bank of Japan’s new governor has said that for the time being he remains committed to ultra expansionary monetary policy with negative real interest rates. 

Softbank will be selling around 30% of its stake in Alibaba. In the March quarter, global sales of personal computers came down y-o-y by almost 33%. Companies are hesitating in buying new personal computers for their employees because of the prevailing economic uncertainty. Samsung Electronics has said that because of the significant decline in demand for personal computers, it will be cutting down production of memory chips.

On the technical front, Nifty 50 is likely to see support at 17520 and resistance at 18000 for this week. 

A Buy call is being given on the stock of Exide Industries for this week. Target price is Rs 196. Stop Loss is Rs 179.