Domestic indices Nifty and Sensex gave up their intraday gains to close in the negative territory. Nifty lost 0.5% to close at 18,116, dropping 150 points from the intraday high. Sensex shed 0.48% and settled at 60,840, giving up 552 points from the day’s high. Bank Nifty closed 0.5% but retained the 43,000 level. The broader markets and sectoral indices performed better, Nifty Smallcap 100 closed up 0.75% and Nifty Midcap 100 gained 0.5%. Nifty PSU outperformed and added 1.51% while Nifty Auto and Nifty IT lost 0.2% respectively. SBI Life and Eicher Motors are the top laggards of the Nifty 50 index for the day.
Markets Decoded: Value buying theme for 2023
“On the last day of a tumultuous year, domestic indices shed their early gains as negative signals from global peers pushed indices lower. Investors remained concerned over the economic outlook for the new year, underpinned by growing fears of recession. The ongoing volatility is expected to be sustained in the near-term because of high interest rates and a slowing economy. We believe that value buying is the theme of 2023. Fair valuation, steady earnings, and a robust demand scenario will be the cutting parameters.” – Vinod Nair, Head of Research, Geojit Financial Services
“World stocks were mixed (Europe down and Asia mostly up) on the last trading day of the year as markets digested U.S. data and the dismantling of China’s zero-COVID policy. India’s poor CAD number for the fiscal second quarter weighed on the minds of participants.” – Deepak Jasani, Head of Retail Research, HDFC
Nifty Technical View: Nifty gained 4.3% in CY22
“Technically, after a sharp correction, the index took the support near 17,800/59,800 and reversed quickly. However, last Friday witnessed some profit booking at higher levels. A bullish candle on weekly charts and higher bottom formation on daily and intraday charts indicating further uptrend from the current levels. For trend following traders now, 18,000/60,500 would act as a sacrosanct support zone above which the index could move up till the 50 day SMA (Simple Moving Average) or 18,300/61,400. Further upside may also continue which could lift the index till 20 day SMA or 18,400/61,750. On the flip side, fresh selloff is possible only after dismissal of 18,000/60,500, below which the market could slip till 17,800-17,750/59,800-59,600 levels.” – Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities
“Nifty formed a bearish Dark cloud cover pattern on daily charts. However on weekly charts, Nifty closed in the positive (higher by 1.68%) after a three week fall. 17,774 now becomes an important support level to track. On up moves, 18,255-18,473 band remains a crucial resistance. Over the calendar year 2022, Nifty gained 4.3%, while for the month of December, it closed 3.5% in the negative.” – Deepak Jasani, Head of Retail Research, HDFC Securities