iifl-logo

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

Market forecast - What to expect this week?

25 Oct 2022 , 10:50 AM

Indian equity markets are likely to experience some uncertainty and volatility this week. US Federal Reserve will announce its interest rate hike during its meeting at the beginning of next week. The gains seen in US markets in the past two days indicate that the probability of Federal Reserve becoming less aggressive in its interest rate hike has increased. If Foreign Portfolio Investors, investing in Indian equity markets, also place weight on this increased probability, then selling by foreign portfolio investors will remain subdued. 

This expectation is strengthened by the fact that US business activity seems to have weakened further in October. An S&P Global Survey has shown that both manufacturing activity and services activity have declined in October, from September levels. US Federal Reserve is bound to show some caution regarding its course of relentless rate hikes. US mid-term elections will take place on November 8th. The Federal Reserve will also feel political pressure to not continue the trade-off between economic growth and inflation in the week leading to elections. 

Global cues remain negative. Inflation rate in Britain in September stood at 10.1%. Food price inflation was even higher at 14.1%. Inflation in milk and butter prices, in the country, stood at a whopping 30%. Energy price inflation stood at 70%. Bank of England will start selling short term and mid term bonds that it bought during quantitative easing. This will bring down prices of short term and medium term bonds in the country and increase yields on them. 

On the technical front, a Buy call is being given on the stock of State Bank of India for this week.  Stop Loss is Rs 560. Target price is Rs 590. 

Related Tags

  • BSE
  • nifty
  • NSE
  • sensex
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More
Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.