Daily Markets Wrap - Dec 23, 2022 - HDFC Securities

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

Nifty fell for the fourth consecutive session on Dec 23, after US stocks sold off in the previous session. Nifty opened with a downgap and kept falling through the day before closing 1.77% or 320.6 points lower at 17806.8. This was the sharpest single day fall in three months. Nifty was the second worst performer in the region after South Korea. Volumes on the NSE were not unusually large suggesting lack of buyers at lower levels. Broad market indices kept falling more than the Nifty even as the advance decline ratio on the BSE fell to 0.15, the lowest since Feb 24, 2022.

European stock markets edged higher Friday in thin holiday-affected volumes while most Asian markets indexes fell after forecast-beating US data fuelled expectations that the Federal Reserve will lift interest rates well into next year.US inflation data due later Friday also caused concerns that it may be yet another reason for the Federal Reserve to harden its resolve to pursue aggressive policy.

Nifty fell 2.53% for the week, losing the most in 6.5 months. It has fallen with a downgap on Friday. Cyclical stocks fell the most while BFSI and defensives fell the least. The down move could continue with some intermittent bounces. Nifty seems headed towards 17730 and later 17349. 18133-18246 may be tough to cross on the upside for some time.

Source : Equity Bulls

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