Stock Market Outlook on Friday, 23 December 2022: 10 things to watch out for, before markets reopen

Indian stock markets ended Thursday in red, witnessing third consecutive fall this week. S&P BSE Sensex ended at 60,826.22, down 241.02 points or 0.39 per cent while the broader market Nifty50 ended at 18,127.35, down by 71.75 points or 0.39 per cent. Covid-19 fears have weighed on Dalal Street as country comes into alert mode following news emerging from China and US.

When markets reopen on Friday, 23 December 2022, they will likely be impacted by a host of triggers local and global. We have collated 10 factors that could determine movement.

1) Covid-19: News emerging from China has rung alarm bells across the globe. A Reuters report has stated that China could report 25 million Coronavirus cases by next week. Japan and US are also reporting large number of daily cases. A strict lockdown in China led to nervousness in global stock markets. Investors must watch the situation as it emerges. In India, Centre and states have also issued alerts.

2) US Markets: US markets fell on Thursday as the country reported better than estimated GDP growth numbers from July through September despite sharp interest rate hikes undertaken by the US Federal Reserve. This has sparked fears of further monetary tightening as inflation remains high in the world’s largest economy. Dow 30 was trading at 32,964.50, down 412 points or 1.23 per cent while S&P 500 was trading at 3,812.45, down 65.99 points or 1.70 per cent. Nasdaq Composite was trading at 10,448.30, down 261.10 points or 2.44 per cent. Dow Futures were trading at 32,935.50, down 441 points or 1.32 per cent.

Singapore-based SGX Nifty futures, an early indicator of movement in Nifty50, were trading at 18,068.5, down 109.5 points or 0.60 per cent. Investors must keep an eye on it.

 Source: Comex

 Source:Comex

3) Stocks in Ban: Indiabulls Housing Finance

4) Bulk Deals: Close to two dozen companies witnessed bulk deals today. Among them was Ajanta Pharma, where promoters Aayush Agrawal and Ravi Agrawal sold their shares. Balkrshna Paper Mills, Morepan Laboratories, Sula Vineyards, Thyrocare Tech and Suzlon Energy were some others which saw bulk deal transactions.

5) FII / DII: Buying returned on Dalal Street as Foreign Institutional Investors were net buyers of Indian equities worth Rs 928 crore while domestic institutional investors purchased shares worth Rs 2206 crore.

6) Stocks in News: Expect stock specific action in LIC which has increased its stake in Info Edge and GAIL India. Wipro’s unit Wipro Gallahagher Solutions sold all its membership interests in Wipro Opus Risk Solutions. Stocks like NTPC, Railtel, Ramco Industries and others may also see movement on company specific news.

7) IPO Watch: Plenty of action in this space as Abans Holdings (Price Band- Rs 256 to 270, Issue Size - Rs 345.60 crore, Subscription-1.10 Times) and Landmark Cars (Price Band- Rs 481 to 506, Issue Size- 552 crore, Subscription-3.06 Times) will get listed. Radiant Cash Management IPO to open (Period- 23-27 December; Price- Rs 94 to Rs 99, Lot size- 150 Shares, Issue Size- 387.94 crore, OFS- 327.94 crore).

8) Rupee Vs Dollar: Another session of range bound session for rupee within 82.64 to 82.81 with dips for the dollar getting bought and upticks getting sold with RBI present, Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP said. Rupee to continue to be range bound between 82.40 and 82.90 on Friday, he added. Dollar Index has slipped below 104.       

9) Anil Singhvi Strategy on Nifty, Bank Nifty: Nifty has first support zone at 18000-18025 while next support zone at 17800-17900. It has resistance at 18275-18325. Bank Nifty has support at 42050-42200 while resistance at 42600-42800.

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10) Commodity: Dollar movement will be critical to how major commodities like gold, silver and crude oil trade. MCX February Gold futures were trading at Rs 54611, down by Rs 460 or 0.84 per cent per 10 gram while March Silver futures were trading at Rs 68785 per kg, down by Rs 924 or 1.33 per cent at the time of filing this piece.

Expert Take:

“The equity market traded lower again mainly on account of the overarching influence of negative factors and news from overseas. Some of the recent macro numbers show the US economy still staying in relatively good health, but the news from China and Japan are not encouraging due to the larger number of covid cases reported from several countries , and the impact of the same on global growth and economic activity in the coming months. This factor may be on the mind of the markets, as to how severe the wave of infections would be and how it will be countered. Stocks across market caps and throughout all sectors traded lower with metals, auto and PSU banks suffering the worst fall. Since countries like India and those in Europe have a much better level of preparedness, the impact may not be too hard this time around, and activity could remain closer to normal.” -- Joseph Thomas, Head of Research, Emkay Wealth Management

“The Nifty opened gap up near its key hourly moving averages only to attract fresh round of selling. As the day progressed, the index breached the lower end of a downward sloping channel. On the downside, it has tested a rising trendline drawn from the June 2022 low & closed above it. Thus the index is trading near a very crucial support of 18000. Till that level holds on a closing basis there is scope for some recovery. However breach of 18000 on a closing basis will intensify the selling pressure. On the other hand, near term resistance zone shifts lower to 18200-18300.” -- Gaurav Ratnaparkhi, Head of Technical Research at Sharekhan by BNP Paribas

(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.)