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NSE Intra-day chart (26 December 2022)
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Market Commentary 27 December 2022
Benchmarks likely to make positive start on optimistic cues from other Asian markets

 

Indian equity benchmarks witnessed a strong recovery after a four-day selloff and settled with gains of over a percent each on Monday amid a positive trend in global markets. After making a cautious start, frontline indices soon gained strength. Some optimism came as a report stated that foreign investors have infused a net Rs 11,557 crore in Indian equities in December so far despite a market correction and increasing concerns over re-emergence of COVID in China and some other parts of the world. Some support also came as Department for Promotion of Industry and Internal Trade (DPIIT) has sought the views of 16 departments and ministries on its draft national retail trade policy, which is aimed at the overall development of all formats of the sector. Key gauges extended gains in afternoon deals, as domestic sentiments remained up-beat with the Centre for Economics and Business Research (Cebr) stating that India's growth trajectory will see the country rise from fifth place on the World Economic League Table in 2022 to third in the global rankings by 2037. However, markets came off day's high points, as some profit booking in the last half an hour trimmed some gains. Traders took a note of a private report that India's exports may have touched an all-time high of USD 422 billion in 2021-22 but recession in key western markets and geo-political crisis due to the Russia-Ukraine war are expected to impact the growth of the country's outbound shipments in 2023. Finally, the BSE Sensex rose 721.13 points or 1.20% to 60,566.42 and the CNX Nifty was up by 207.80 points or 1.17% to 18,014.60.

 

The US markets remained closed on Monday on account of Christmas holiday.

 

Indian rupee ended higher against dollar on Monday, on the back of robust buying in the domestic equities. Sentiments were positive with a report stating that foreign investors have infused a net Rs 11,557 crore in Indian equities in December so far despite a market correction and increasing concerns over re-emergence of COVID in China and some other parts of the world. Besides, Centre for Economics and Business Research (Cebr) said that India's growth trajectory will see the country rise from fifth place on the World Economic League Table in 2022 to third in the global rankings by 2037. On the global front, Russian rouble edged higher against the dollar on Monday, recovering some ground after its largest weekly slump since early July on fears over the impact of oil and gas sanctions on Russia's export revenue. Finally, the rupee ended at 82.65 (Provisional), stronger by 17 paise from its previous close of 82.82 on Friday.

 

The FIIs as per Monday's data were net sellers in both equity and debt segment. In equity segment, the gross buying was of Rs 3479.49 crore against gross selling of Rs 4357.25 crore, while in the debt segment, the gross purchase was of Rs 124.84 crore against gross selling of Rs 128.84 crore. Besides, in the hybrid segment, the gross buying was of Rs 0.63 crore against gross selling of Rs 13.55 crore.

 

The US markets were closed on Monday on account of Christmas holiday. Asian markets are trading in green amid China relaxes Covid-19 restrictions as the country cancels quarantine rules for travelers. The infection has been downgraded to Category A and Category B. New rules will come into effect from January 8, 2023. Indian equity markets ended higher with gains of over one percent on Monday led by Utilities, PSU and power stocks. Today, markets are likely to make optimistic start amid positive cues from other Asian markets on hopes of demand recovery in China after the country announced it will ease its strict COVID-19 restrictions. Traders may get support with private report that India is well positioned to continue to be the fastest-growing major economy next year, which may mark the lowest global growth since the millennium began barring the pandemic and the global financial crisis. Some support may also come with reports that Gross direct tax collections for 2022-23 (up to November 30) are up by 29.66 per cent at Rs 10,93,385 crore, which was over Rs 8,43,301 crore collected during the corresponding period of last year. The growth has been achieved due to the performance of economy, administration and implementation of the provisions of the direct tax laws. However, traders may be cautious on private report that a sustained surge in Covid cases in China could further exacerbate a contraction in India's exports to its fourth-largest market in the coming months, as order flow has already been faltering at a steady pace. Street now forecast a 40-45% crash in exports to China this fiscal from $21.3 billion in FY22 if the Covid surge continues through January. There will be some buzz in coal related stocks as the Coal Consumers Association of India (CCAI) has made a plea to the government to resume rake-based supplies to the non-power sector in a bid to maintain cost competitiveness and sustain operations. There may be some reaction in textiles stocks as the government said that the Rs 10,683-crore production-linked incentive scheme for India's textiles sector attracted investments of Rs 1,536 crore as approval letters were issued to 56 applicants who met the eligibility criteria.

 

Support and Resistance: NSE (Nifty) and BSE (Sensex)

 

Index

Previous close

Support

Resistance

NSE Nifty

18,014.60

17,831.20

18,141.05

BSE Sensex

60,566.42

59,935.76

61,015.44

 

Nifty Top volumes

 

Stock

 

Volume

Previous close (Rs)

Support  (Rs)

Resistance (Rs)

(in Lacs)

Tata Steel

339.95

105.00

102.59

106.49

Tata Motors

169.79

384.80

376.44

391.94

State Bank of India

132.01

597.10

577.96

608.96

ITC

95.66

334.60

328.36

337.96

NTPC

83.21

165.65

162.45

168.30

  • NTPC has inked a non-binding MoU with Tecnimont, Indian Subsidiary of Maire Tecnimont Group, Italy.
  • Bharti Airtel has launched its cutting edge 5G services in Pune.
  • Maruti Suzuki India is eyeing sales of its vehicles with auto gear shift to pick up further next year, with increasing congestion across cities in India.
  • L&T's construction arm -- L&T construction has secured prestigious orders for its Water & Effluent Treatment Business from the Tumakuru Industrial Township under the Chennai Bengaluru Industrial Corridor.
News Analysis