Below is Weekly outlook on Sensex,Nifty,Banknifty and USDINR Outlook by Mr. Anuj Gupta, Vice President, IIFL Securities
last week we have seen a sharp correction indian equity market. Sensex corrected by 1.59% and closed at 58840 levels after touching the recent high of 60670 levels. Nifty also corrected by 1.70% and closed at 17530 levels after touching the recent high of 18096 levels.
on the another side we have seen a 4th consicutive positive week in bank nifty. it was closed higher by 0.89% and closed at 40776 levels.
Month till date FII in net inflow of 1915.68 Cr but DIIs are in net sell off of Rs 3006.50 Cr. This time domestic sellers were in selling side which leads the correcting in indian equity marekt. Fear of recession after world bank statement and IMF statement also putting pressure on equity marekt. Global rating agency Fitch lowered India’s economic growth forecast for FY23 to 7 per cent from its June 2022 estimate of 7.8 per cent. It now expects the GDP to slow further to 6.7 per cent in FY24 as compared to its earlier forecast of 7.4 per cent.
As per the monthly economic review it is expecting that a sharp rebound in consumer spending and rising employment will sustain economic growth in India. Business investment has been encouraged by government spending which climbed 35% in April-August compared to the same period a year ago and growht in tax revenue is also positive for the indian economy. higher foreign exchange reserves and strong exports earning will provide a support to the economy and will see a growth in indian economy which lead support the equity market.
for the next week nifty has strong support at 17300 and 17000 levels. Resistance at 17800 to 18100 levels. we are recommending buy on support levels around 17200 t0 17300 levels with the stop loss of 17000 levels for the target of 17800 to 17900 levels. 18100 is working as a strong barrier for the nifty. it is break and close above 18100 level than it will open a gate for new levels of 18500 to 19000 levels. Bank nifty support at 40000 and 39300 levels, resistance at 41300 and 42000 levels. Bank nifty may test 42000 levels very soon. Sensex has support at 57500 levels and resistance at 61000 levels. Expecting rebound from lower levels due to fresh buying on lower levels.
Rupee also depreciated by 0.25% and closed at 79.72 levels due to higher dollar index. It has a strong support at 79.40 and resistance at 80.20 levels. We are expecting it may trade between 79.40 to 80.20 levels.
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