What to expect when markets reopen on Thursday, 22 December 2022? Here are 10 factors that could impact movement

Indian stock markets ended Wednesday in red as Covid-19 fears in China and US dented sentiments on Dalal Street. S&P BSE Sensex and Nifty50 fell by 635 points and 186 points respectively. Sensex ended at 61,067.24 while the broader market Nifty50 closed at 18,199.10 – both down over 1 per cent.

This was the second successive negative closing for frontline indices.

There will be local and global triggers that will impact movement when equity markets resume trading on Thursday, 22 December 2022. We have collated 10 factors that could trigger trade on the weekly expiry day.

10 triggers to watch out for: 

1) Covid-19: Centre and state governments have also sprung into action with alerts now being issued. Union health ministry conducted an emergency meeting today. Delhi Government also called for an emergency meeting while Uttar Pradesh government has issued alerts. Maharashtra Government has also issued alerts.   

2) Global Markets: US markets were trading positive on Wednesday notwithstanding Asian market crash. The optimism was on better than expected quarterly earnings posted by Nike, Reuters reported. Dow 30 was trading at 33,215.80, up 366 points 1.11 per cent while S&P 500 was trading at 3,862.37, up 40.75 points or 1.07 per cent. Nasdaq Composite was trading at 10,662.40, higher by 115.30 points or 1.09 per cent. Dow futures were trading at 33,398.90, up 549.20 points or 1.67 per cent.

Investors must watch out for movement in Singapore-based SGX Nifty futures, an early indicator of movement in Nifty50 At the time of filing of this story, they were trading at 18,338, up 88 points or 0.48 per cent.

3) Anil Singhvi Strategy: Nifty has support at 18,075-18,125 while resistance at 18400. Bank Nifty has support at 42,300-42,375 while resistance at 42850-42950. Tomorrow’s session could be laden with volatility and investors must be ready for that, Singhvi said.

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4) “The Nifty had a gap up opening on December 21 however stumbled near the hourly upper Bollinger Band. Thereon it witnessed downside pressure throughout the day. It breached certain short term supports on the way down and ended marginally below the level of 18200. India VIX shot up today & can lead to increased volatility in the short term. Thus the index can have a short term range shift on the downside and can test 18000 on the downside, which is a crucial support. On the other hand, short term resistance zone shifts lower to 18450-18500,” Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas said.

5) Stocks in Ban are GNFC, Indiabulls Housing Finance and IRCTC. Meanwhile, Delta Corp and Punjab National Bank are out of ban

6) FII / DII data: The Foreign Institutional Investors were net sellers of Indian equities at Rs 1119.11 crore while Domestic Institutional Investors were net buyers at Rs 1757.37 crore.

7) Bulk Deals: Around two dozen companies witnessed bulk deals today with many companies from the sugar pack. Bajaj Hindustan, Ugar Sugar Works, Sakthi Sugars and Rana Sugars were companies which saw bulk deal transactions. Among others were Kamdhenu Ispat, Talbros Automotive, Balkrshna Paper Mills and Max Financial Services. Stock specific action is expected in these stocks.

Read More: Sunflame acquisition augurs well for V-Guard Industries, says Sharekhan; sees 23% upside on these positives

8) IPO Watch: It will be the last day for Elin Electronics IPO. The issue was overall subscribed 0.51 times on the NSE. The retail portion was subscribed 0.76 per cent.

9) Rupee Vs Dollar: Indian Rupee was range bound today between 82.66 to 82.82 as volumes plummeted  due to holiday season, Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP said. Dollar Index was at 104, Brent oil at USD 80.32 per barrel were stable. Asian currencies were generally on the higher side although today they fell slightly. Rupee will likely remain in the range of 82.40 to 83.00 for the next few days with risk continuing to be on the upside as RBI is the only protector, he said.

10) Commodity Markets:  MCX February futures were trading at Rs 55102, up by Rs 204 or 0.37 per cent while March Silver futures were trading at Rs 69820 per kg, up by Rs 178 or 0.26 per cent. As we move towards the end of trading on MCX, commodity and currency expert Anuj Gupta has recommended a buy on Gold futures at Rs 54,700 with a stop loss of Rs 54,250 and price target of Rs 55,500. Gupta, who is Vice President (VP), Commodity and Currency Research at IIFL Securities also recommended a buy in Silver futures at Rs 69,000 per kg with a stop loss of Rs 67,900 and price target of Rs 71,500. Movement in precious metals and other commodities will depend on how Dollar moves.   

MCX

 Comex    

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)