Last week – review: Last week we change our stance to cautious from bullish, awaiting further clarity from US Fed meeting outcome. Technical setup which was indicating in overbought zone, reacted to downward move along the expected line.
Approach on Technical: Nifty @ 18133 & Banknifty @ 42997 / 42937 could test and take support and will face resistance on Nifty @ 18599 & Banknifty @ 43584.
Fundamental Insight
US Fed increase rate by 50-bps to 4.25% – 4.50% – In line with market expectation.
Median forecast for 2023 raised to 5.1% up 50-bps from September 2022 meeting.
ECB President Lagarde: “We have more ground to cover, we have longer to go and we are in for a long game.”
BOE MPC repeats willingness to act forcefully if needed.
Oil Drops as Mounting Recession Fears Weigh On Risky Assets
India’s Forex Reserves Swell By $2.91 Billion To $564.1 Billion
RBI Fortnightly data as on 2-Dec-22
• Credit growth continues to remain robust – credit growth @ 17.5%
• Deposit growth rate increased to 9.9%
Last week we change our view from bullish to cautious. We continue to maintain our stance and remain cautious. Next 2 weeks market could be in holiday mood or see profit booking as recession fear weighs on market which could trigger profit booking by FII & Institutional selling.