Market forecast - What to expect this week?

26 Sep 2022 , 10:58 AM

Indian equity markets are likely to see a turbulent week. RBI is likely to increase interest rate by 50 basis points in its upcoming meeting this week. Asian Development Bank has warned that economic activity in India has still not returned back to pre-pandemic level. Therefore, it has advised that RBI should go slow on interest rate hike. 

Global economic slowdown is set to worsen as a number of central banks have simultaneously raised interest rates. Following the cue of Federal Reserve, Bank of England has raised interest rate by 0.5%. Swiss National Bank has raised interest rate to 0.5% from – .25%. Swedish central bank has raised interest rate by 1%. British Government has capped wholesale price of energy so that businesses can survive the winter. Many businesses in UK face the threat of bankruptcy and liquidation because of high energy prices. German government has nationalized Uniper to prevent it from bankruptcy. Uniper is the biggest gas importing company in Germany.

On the technical front, Nifty is likely to see support at 17000 this week. Resistance is likely to be at 17600. Banking and Realty stocks are likely to be bearish this week. A Sell call is being given on the stock of Info Edge for this week.  Target price is Rs 3760. Stop Loss is at 3980.