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Below is Weekly outlook on Sensex,Nifty,Banknifty and USDINR Outlook by Mr. Anuj Gupta, Vice President, IIFL Securities

Last week we have seen that indian equity market closed on a negative note coupled with negative global equity market. 

Global equity market closed on a weak note as Federal Reserve Chief Jerome Powell's signal that the central bank would keep hiking rates to tame inflation nixed nascent hopes for a more modest path among some investors.

ECB may opt big rate hike in coming meeting next month to fight with inflation. Dollar in increased by 1.27% at 108.83 levels last week.

Nifty closed down by 1.12% at 17558 levels. Sensex closed lower  1.21% at 58833 levels. Banknifty closed on a flat note. Ruppee closed on a flat note at 79.81 levels.

This negative trend was only on the expectation of hawkish statement by the Fed chief .

We have seen some relief on last inflation number noticed as below 7%  CPI data.  Crude oil prices is giving coolness to indian economy. 

The trend of Indian economy is on recovery side due to lower commodity prices basically from crude oil and edible oil. 

We are expecting that in next week indian equity market may trade on a positive side on back of positive companies earnings and recover in inflation.

For next week sensex has strong support at 57500 and 56000 levels. Resistance at 59500 and 61000 levels. Nifty support at 17200 and 16800 levels. Resistance at 17900 and 18300 levels. Banknifty support at 37800 and 36700 levels. Resistance at 39600 and 40500 levels. Rupee has a strong support at 79.40 and 78.70 levels. Resistance at 80.30 to 80.80 levels.

We are recommending buy on a dips in nifty and banknifty. Traders can buy nifty around 17200 to 17300 levels with the stoploss of 16800 for the target of 17900 to 18000 levels. Theu can also go for buy in banknifty around  37800 with the stoploss of 36700 levels for the target of 39600 to 40000 levels. 

Nifty may test 18000 levels, banknifty may test 40000 levels and sensex may test 62000 levels very soon. Rupee may trade beteeen 79.40 to 80.20 levels.

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