Daily Markets Wrap - Oct 14, 2022 - HDFC Securities

Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty ended higher on Friday - Oct 14, trimming the weekly losses aided by positive overnight cues. Nifty opened gap up and rose to make an intra day high at 1215 Hrs. It later ran into profit taking and closed near its intra day low, though in the positive. At close, Nifty was up 1.01% or 171.4 points at 17185.7.

Volumes on the NSE on such a positive day were below normal. Among sectors, Banks and IT gained the most while Power & Oil & Gas indices lost the most. Broad market indices underperformed as the focus was on the frontline largecap stocks. Advance decline ratio however improved to 0.95:1.

Asian equities snapped a five-day losing run, tracking a rally in US peers, with investors looking to China's twice-a-decade Party Congress (starting on Sunday) for policies to help revive its economy and markets. European shares climbed on Friday as hopes grew of a U-turn in some fiscal steps announced by the British government, with investors also snapping up beaten-down stocks amid worries about economic growth and its impact on corporate earnings.

India's wholesale inflation declined for the fourth consecutive month, aided by softening food and fuel prices. The wholesale price index stood at 10.7% in September 2022 compared to 12.41% in August and 11.80% in September 2021.

Nifty salvaged some of the earlier losses during the week on Friday and closed 0.74% lower. Over a 3 week period, Nifty has formed a higher bottom. Once it breaches 17429, it will also make a higher top. It has remained in the 16748-17429 band for the last three weeks. It has a fair chance to continue with the upward bounce in the coming week. On upmoves 17348-17429 could offer resistance while 17112 and later 16855 could offer support. An upward breach of 17429 could result in broad based and volume led rally in the markets.

Source : Equity Bulls

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DailyMarketsWrap HDFCSecurities Nifty Sensex