Stock Market on Monday: 10 triggers that could impact movement when markets reopen on 2nd January

Indian stock markets ended 2022 on a negative note. On Friday, which was the last trading day of 2022, frontline indices S&P BSE Sensex ended at 60,840.74, down 293.14 points or 0.48 per cent while the broader market NSE Nifty50 finished at 18,105.30, down 85.70 points or 0.47 per cent

In 2022, Sensex gained 5.7 per cent year-on-year while Nifty50 is up 5.2 per cent during this period.

When markets reopen on Monday, 2 January 2023, there will be a host of local and global triggers which will impact movement. We have collated 10 things to watch out for.

1) US Markets

Wall Street ended in red on Friday with Dow 30 closing at 33,147.20, down 73.55 points or 0.22 per cent while S&P 500 settled at 3,839.50, down 9.78 points or 0.25 per cent. Nasdaq Composite was down 11 points or 0.11 per cent at 10,466.50. When markets reopen tomorrow, investors must watch out for movement in Dow 30 Futures. They ended at 33,163.50, down 57.30 points or 0.17 per cent. Singapore-based SGX Nifty futures, an early indicator of movement in Nifty will also determine what direction local markets will take. It ended at 18,145, down 78 or 0.43 per cent.    

 Source: Comex

2) Federal Reserve Action/Events: Global markets will also be keeping an eye on minutes of the FOMC meeting of 13-14 December that will be released on Wednesday, 4 January, 2023. The next meeting takes place on 31 January and 1 February.  Covid-19 developments in China may likely play a role, as well.

The coming week marks the beginning of the new calendar year 2023 and participants will look forward to important data viz. auto sales, S&P Global India Manufacturing PMI data and S&P Global India Services PMI data during the week. Besides, global cues will continue to keep the volatility high, Ajit Mishra, Vice President - Technical Research at Religare Broking Ltd said.

3) Q3 FY23 Earnings season begins from Wednesday. The season kicks-off from announcement of TCS quarterly earnings on 9 January. IT stocks could remain in action ahead of the results.

4) Stocks in News: Expect stock specific action in auto stocks as several top vehicle makers announced their December sales. While Tata Motors registered a 10% YoY jump in domestic sales, Maruti Suzuki India posted 9 per cent decline in wholesales at 1,39,347 units in December.

Read More: Despite headwinds Sharekhan gives buy on Britannia; sees Rs 700 per share gains on double-digit earnings growth potential

5) FII /DII Action: Foreign Institutional Investors sold Indian equities worth Rs 2950.89 crore  while domestic institutional investors were net buyers at Rs 2266.2 crore.

6) Bulk Deals: Nearly two dozen companies witnessed bulk deal actions on Friday. Several bulk deal transactions were done in recently listed Elin Electronics with Societe Generale and Morgan Stanley selling shares in the company and NK Securities buying. Some others were Kshtij Polyline and South Indian Bank.

7) Stocks in Ban: No stocks are under ban in the Futures & Options (F&O).

8) Rupee Vs Dollar: The rupee is expected to be in a range of 82.30 to 83.20 next week as we expect inflows to return after a tepid December-22. Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP said. The rupee gained 14 paise to close at 82.73 (provisional) against the US dollar in the last trading session of 2022, as the American currency retreated from its elevated levels and a rising appetite for riskier assets among investors, PTI reported.

The local currency, however, ended the year on a negative note, with a loss of 844 paise or 11.36 per cent, primarily led by a strong dollar against its major crosses overseas. The greenback climbed in the overseas market as the US Federal Reserve raised rates aggressively following surging inflation. On December 31, 2021, the rupee settled at 74.29 against the US dollar.

9) Anil Singhvi Strategy on Nifty, Bank Nifty - key support and resistance levels: Zee Business Managing Editor Anil Singhvi said that the markets will be driven mainly by domestic factors. He sees support for Nifty at 17,975-18,025 while resistance 18,250-18,300 where some profit booking will likely be seen. As for Bank Nifty, support is seen at 42,625-42,700 resistance at 43,300-43,425.

"We have mixed indications on the index front as Nifty is facing resistance on every rise however the buoyancy in the banking pack along with select index majors from other sectors has eased some pressure. Nifty has multiple hurdles to cross till 18,500 so participants should continue with stock- specific approach. We are seeing certain themes and sectors like fertilisers, sugar, banking, metal, and energy showing resilience while defensive viz. FMCG and pharma may continue to trade lackluster so plan your positions accordingly," Mishra of Religare Broking said.

Read More: Stock Market Outlook: What technical charts suggest about near term movement of Sensex, Nifty?

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10) Commodity Action: Dollar Index is hovering below 104 against the basket of six major currencies and its movement will impact movement of top commodities like Gold, Silver and crude oil. MCX February futures closed at Rs 54972, up by Re 1 on Friday. MCX March Silver futures ended at Rs 69370 per kg, down by Rs 397 or 1 per cent.   

  Source: MCX

 Source: 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.)