Week Ending 22nd December 2023

Dear patrons, yet another stellar week has passed on the bourses, with the benchmark index posting new "All-Time-High". It has been a dominant display by the bulls for yet another week, barring an exception of the mid week session where, Nifty lost close to 2% witnessing year's biggest intraday fall. Bulls. however took charge in late hours during the penultimate session and continued to take markets higher.

There was a sharp fall on Wednesday, wherein Nifty touched an "All-Time-High" and slid quickly and sharply. A number of attributions were given for the fall. RBI's announcement that Indian inflation was above its expectation and may need some more time to come down might have spooked the markets, leading to a healthy fall. On the other hand IMF restoring faith in Indian economy and declaring India to be fastest growing large economy restored some faith and we saw markets recover on following days.

Globally, there is optimism that interest rates world over may stabilize and we may witness rates coming down sooner than later. This optimism lead to a rally in almost all the developed as well as emerging markets.

Another good news from the world of investment is that India Weightage increased from 7.7% to 16.6% in MSCI EM. This FPI money will get pumped in Nifty 100 stocks. Which can trigger a big rally in Large Cap & Larger Midcaps.

Let's now have a look at the charts and try to figure out what lies in store for the last week of the year.

We can clearly see Nifty recovering from a fall in the above chart. We had suggested that Nifty has resistance around 21500-21600 level and strong support around 21000 level. Nifty made a high of 21593 and fell sharply towards 21000 on Wednesday, follow up fall on Thursday saw Nifty touching sub 21000 level and recover sharply and settling the week comfortably above 21300. You may read it here (Weekly Market Update: Week Ending 15th December 2023 (amitbajare.blogspot.com).

For the coming week, we expect Nifty to remain volatile owing to monthly expiry of derivatives contracts. Moves on either side may be sharp but the bias remains positive. We expect Nifty to end the year on a High. Also next week being a truncated week may see higher volatility.

BankNifty on the other hand remained subdued with intraday volatility remaining high. It has closed marginally below its support on daily charts, but bias on BankNifty also remains positive. 

Indian markets are expected to remain bullish and surge ahead. Profitable times lie ahead for the investors.

Stay Invested!!!

“Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.” – By Paul Samuelson

P.S.: This communication is for educational purpose only and does not recommend buying or selling any stock or index. Trade at your own risk.