Market forecast - What to expect this week?

10 Oct 2022 , 11:33 AM

Indian equity markets are likely to remain volatile this week. Markets will swing between green and red. The probability of markets tilting more towards the red zone is higher.  OPEC+ decision to reduce oil output by 2 million barrels per day will put further upward pressure on inflation. This is another major hurdle that has come up in the path to economic recovery. Companies will start announcing their September quarter results, this week. This will also have an impact on the course of Indian equity markets. Global factors will continue to have a significant impact on the course of market movement.

Annual inflation in Netherlands touched 14.5% in September. This is driven by year-on-year increase of almost 200% in energy prices. Australia’s central bank has increased interest rate by 0.25%. Benchmark interest rate in Australia is now at 2.6%. Interest rate on two year fixed rate mortgage in UK is above 6% now. This is the highest level of mortgage interest rate in the country, since 2008. WTO has forecasted that in volume terms, global trade will increase by 3.5% in 2022, and by 1% in 2023.

On the technical front, Nifty 50 is likely to see support at 17,000 and resistance at 17,700 level. Realty and Pharma stocks are expected to do well this week.

A Buy call is being given, for this week, on the stock of Deepak Nitrite. Target price is  Rs 2350. Stop Loss is Rs 2140.

A Buy call is also being given on the stock of Sun Pharma. Target price is Rs 1010. Stop Loss is Rs 925.