Domestic equities ended the last day of the year on a sombre note with profit booking pulling down the index in the last 30 minutes. Indian equities missed its Santa rally in the month of December’22 despite Nifty making new high of 18888 at the start of the month. For Dec the index was down by ~3% while ending CY23 with gains of 4%. Broader market saw a mixed trend with Nifty midcap 100 closing the year with gains of +3% while Nifty Smallcap 100 saw a sharp decline of -14%.
As we start the new year 2023, we expect markets to remain sideways in a range in the near term. While fears of recession and spread of covid outside China is capping the upside, we are witnessing strong buying at lower levels which are supporting the markets on the downside. Q3 results and the upcoming Union Budget could provide much needed fresh positive triggers to Indian Equities.
Nifty futures opened at 18338.00 points against the previous close of 18292.25 and opened at a low of 18172.35 points. Nifty Future closed with an average movement of 201.65 points and a decline of around 85.40 points and 18206.85 points…!!
On the NSE, the midcap 100 index will rise 0.50% and smallcap 100 index is closing rise 0.75%. Speaking of various sectoral indices, the NSE saw gains in only PSU Bank, Realty, Media and Metal stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, February gold opened at Rs.54975 fell from a high of Rs.55125 points to a low of Rs.54860 with a rise of 34 points, a trend of around Rs.55005 and March Silver opened at Rs.69604, fell from a high of Rs.70000 points to a low of Rs.69211, with a decline of 145 points, a trend of around Rs.69622.
Sentiments remained downbeat with a private report stating that after three consecutive years of infusing huge funds, foreign portfolio investors retreated from the Indian equity markets in a big way in 2022 with the highest-ever yearly net outflow of nearly Rs 1.21 lakh crore. Some pessimism also came with RBI Monetary Policy Committee (MPC) Member Ashima Goyal’s statement that the government should not go in for an ‘aggressive fiscal consolidation’ in the upcoming budget as global risks have not abated. However, last hour buying erased all the intraday losses to help the bourses close on a positive note.
Traders found solace with Crisil’s report stating that strong domestic demand, healthier corporate balance sheets, and a well-capitalised banking sector are expected to steer India towards a 7 per cent gross domestic product (GDP) print in 2022-23. Traders got some support with report stated that free trade agreement (FTA) between India and Australia, which comes into effect from December 29, 2022, will help boost bilateral trade in goods and services to cross $70 billion in the next five years.
Adding to the optimism, various export promotion councils (EPCs) lauded the trade agreements signed by India with the UAE and Australia, saying the pacts will help the country in boosting exports by granting preferential access to those markets for Indian products.
Technically, the important key resistances are placed in Nifty future are at 18272 levels, which could offer for the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 18303 – 18373 levels. Immediate support is placed at 18088 – 18008 levels.