Last week – review:
This week started on weak note as indices tested lower end of the range on Nifty around 17775 & Banknifty around 41597. Indices manage to hold to critical level and also tested upper end of the range where Nifty tested high around 18180 & Banknifty around 42700.
Major US Banks came with earnings but failed to cheer the market. US market corrected to weak PPI & Retail sales data, which is trend reversal, earlier weak economic data will have positive impact.
Approach on Technical: We would wait for clear break-out before taking fresh view, market has been in this range from almost last 3 weeks, consolidation seems to be taking too long, we believe longer the consolidation the move on either side will be sharp & trending.
Nifty above 18202 could open upside to 18547 & 18887. Nifty below 17775 it could test 17175 & 16733 on lower side. Banknifty above 42573 could test 43176 & 43723 and below 41597 it could test 41024 & 40048 on lower side.
Fundamental Insight
1) India’s Forex Reserves Zoom By $10.417 Billion To $572 Billion
2) India To Be A $3.7 Trillion Economy In 2023: RBI Article
3) RBI Cautions States Against Reverting To Old Pension Scheme
4) What Are AT1 Bonds And Why They Could Land Yes Bank In Trouble?
5) RBI Tweaks Norms Related To Acquisition For Banks
Market View & Strategy
SGX Nifty is trading at 18127.50 up 53 points as on Friday’s closing trade, reaction to RELIANCE and positive global cues. ICICIBANK, KOTAKBANK & ULTRACEMCO earnings to be released on Saturday. On Friday, Banknifty showed some strength on back of HDFC & HDFCBANK taking the lead. Final F&O expiry for January series is on 25-Jan-23 will play its role ahead of Budget next week on 1-Feb-23.
We remain optimistic till important levels on indices are held, we have maintain this stance for last 3 weeks as market failed to give break-out on either side. We this week may provide some clarity on Wednesday & Friday.