Market forecast - What to expect this week?

17 Oct 2022 , 11:02 AM

Indian equity markets are likely to see another choppy week. There will be volatility. Days in green will be followed by ones in red, and vice-versa. With regard to economic news, any respite is unlikely this week. Inflation will remain a concern. Slowing down of India’s industrial production is indicating to the economic slowdown that is imminent in the coming months. Markets will also be swayed by the September quarter results of companies. Many companies will be announcing their September quarter results this week.

Globally, Bank of England, is intervening in the bond market to prevent bond prices from falling further and yields from rising more. Home mortgage rates in USA continue to rise. Annual interest rate on 30 year mortgage has now risen to 6.8%. Increase in mortgae rate increases the risk of crash in the housing market there. IMF has cut down its global GDP forecast for 2023, to 2.7%. Global  sale of personal computers came down y-o-y by 19.5% in September, according to data from marketing research firm, Gartner. 

On the technical front, Nifty 50 is likely to see support at 16900. Resistance is likely to be seen at 17300. Banking stocks are likely to remain bullish this week. Auto and Energy stocks are likely to see weakness.

A BUY call is being given on the stock of Federal Bank, for this week. Target Price is Rs 138. Stop Loss is Rs 125.

A BUY call is also being given on the stock of Persistent Systems. Target Price is Rs 3820. Stop Loss is Rs 3570.