Last week – review:
We have turned bullish last week, but market ended the week with around 1.36% to 1.86% cut on major indices. Correction was trigger following US Economic data which was mix.
US hourly average earnings came below market estimate which triggered rally in US market. Globally market is volatile but trading in range as market try to find cues on what US Fed next step would be on 1-Feb-23.
Approach on Technical:
This week view, starts with assumption that Nifty starts 150 points as indicated by SGX Nifty, major and sustainable up move once Nifty sustains above 18202 & Banknifty above 43173. We have turned bullish last week, we continue to maintain long with review if Nifty goes below 17775 & Banknifty below 41597.
Fundamental Insight
1) India’s GDP growth likely to be at 7% – Frist advance estimate by NSO
2) Retail Auto Sales Fall In December As Two-Wheelers Remain A Drag
3) Domestic Air Passenger Traffic Grows 15% To Around 129 Lakh In Dec. 2022: ICRA
4) Government Keeps General Provident Fund Interest Unchanged At 7.1% In Q4
5) Cabinet Approves Rs 19,744-Crore National Green Hydrogen Mission
Market View & Strategy
Going into trade next week, all IT majors would declare their result starting with TCS on 9-Jan followed by HCLTECH & INFY on 12-Jan and WIPRO on 13-Jan-23. HDFCBANK result on 14-Jan next Saturday.
Global cues: US Fed chair Jerome Powell speaks on 10-Jan & important US CPI & Core CPI data to be release on 12-Jan.
We have turned bullish last week and we continue to remain bullish, last 3 days market reaction was on US economic data, that remain critical. We don’t see major downside in IT stocks unless there is major disappointment.
Last week correction in banking stocks indicate some kind of saturation in credit growth going forward as high interest rate would slowdown, we expect banking stocks to deliver good result which could provide positive momentum, after this week’s correction we remain bullish till some important levels are held.