Amid a raging controversy over a meltdown in Adani group stocks, a number of significant events are scheduled for the coming week including trade data of two major economies, RBI’s interest rate decision among others, which may keep the traders on tenterhooks.
Investors across the world will keenly watch the trade data numbers of two major economies, the US, and the UK, since they will decide the direction of global indices, said analysts.
Besides, the RBI Monetary Policy Committee (MPC) meeting will be taking the centre stage. D-Street expects a 25 basis points (bps) rate hike and a conservative tone from the central bank.
In the week ahead, ICICI Direct expects Nifty to extend its consolidation in the 17300-18000 range with “positive bias”. The brokerage has advised investors to use volatility during the week as a “buying opportunity”.
“Going ahead while we are witnessing signs of support at lower levels near 17300, sustainability above Budget day high and 20-day ema around 18000 would expedite the up move,” ICICI Direct said in its report.
“Structurally, index has retraced its 9 week rally from September 2022 lows, by 61.8% over past nine weeks indicating the shallow nature of retracement and inherent strength. Use dips to accumulate quality stocks from medium term perspective,” it added.
From the volatility perspective, post budget, India volatility index has declined considerably to 14.5, down 17% for the week, despite large index moves, the brokerage said.
It further said that markets are likely to stabilise near current levels as most of the results from index heavyweights is over along with the crucial events.
