Market breaks crucial levels in the week

“For the week, BSE Sensex lost 940.37 points or 1.54 percent to settle at 59,900.37 and Nifty50 fell 245.85 points or 1.35 percent to close at 17,859.45 levels”.

After witnessing good show in the last week of 2022, the market continued the momentum in the first 2 days of 2023. However, in the second half of the week, the equity market witnessed profit booking with BSE Sensex and Nifty50 falling below 60,000 and 18,000 respectively.

For the week, BSE Sensex lost 940.37 points or 1.54 percent to settle at 59,900.37 and Nifty50 fell 245.85 points or 1.35 percent to close at 17,859.45 levels.

Among sectoral indices on the NSE, Nifty IT and Nifty Media declined 2.3 percent each. Nifty Bank lost nearly 2 percent and Realty fell 1.4 percent.

In the given week, BSE Large-Cap, Mid-Cap and Small-cap indices fell 1.3 percent, 0.58 percent and 0.5 percent, respectively.

“The Nifty started the last week on a positive note however witnessed selling pressure in the second half of the week. As a result, the index moved down towards the lows seen in the last couple of weeks,” said Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas.

“It has once again fallen towards the 20-WMA (Weighted Moving Average), daily lower Bollinger Band & the 50 percent retracement of the Sept-Dec 2022 rally.”

Ratnaparkhi believes, structurally, the Nifty has reached lower end of the short term consolidation range, which is 17,800. Unless the index breaks 17,800 on a closing basis it is likely to stay in the short term consolidation mode. On the other hand, the level of 18,000 will act as a resistance for any minor degree bounce, he added.

Foreign institutional investors (FIIs) remained sellers throughout the first week of 2023 as they sold equities worth Rs 7,813.44 crore, while domestic institutional investors (DIIs) bought equities worth of Rs 2,756.58 crore.

“Domestic equity markets were under pressure this week. Benchmark index like BSE-30 and Nifty-50 witnessed some correction during the week. The BSE Midcap and Small-cap index too were lower, but they outperformed the larger indices. On the sectoral front, most of the indices ended the week with flat to negative returns. BSE IT index declined by ~2% this week, ahead of the start of Q3FY23 results from the coming week. The IT industry is expected to face a tough H1CY23,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.

“While the correction in crude oil prices provided some respite; concerns with respect to global slowdown amid tightening of policy rates by Central banks continue to weigh on investor sentiments. In addition to macro factors, the focus of equity markets over the next few weeks will also be towards Q3FY23 corporate earnings,” he added.

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