stock market outlook: Last week of 2022: Top 7 factors that may impact Nifty bulls

NEW DELHI: Age-old fears of recession, Fed rate hike and the spread of Covid in China empowered Nifty bears this week as the major indices lost around 2.5%, their biggest weekly loss in over 6 months.

Utilities, power, real estate and metal stocks were among the worst hit, while the BSE Pharma index was the lone green spot as it posted positive returns on the resurgence of the Covid scare.

Global markets remained volatile as they responded to rising covid cases in China and strong US GDP data. Brent crude oil prices continue to trade around $80 per barrel, while the yield on the US 10-year Treasury moved upward.

Here are 7 factors that could affect the stock markets this week:

Macro data
India will publish fiscal deficit figures for the month of November on December 30. On the 29th, the US will release initial jobless claims. Analysts said the strong U.S. economic data signaled a continuation of the Fed’s hawkish stance, which has seen bond yields rise and stocks fall.

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Covid cases
The number of Covid cases in China and concerns about a possible recession will affect the global capital market in the short term. The Indian government has also increased vigilance in the wake of the new BF.7 variant of the coronavirus.

IPO Watch
The Sah Polymers IPO will open on December 30, while the Radiant IPO will close on December 27. KFin Tech will be listed on the 29th and Elin Electronics will debut on the 30th.

Monthly expiration
December 29th will be the end of the last month and week of the 2022 calendar year.

Corporate actions
Among the major corporate actions expected this week, PSU lender Central

On December 26, he will hold a meeting to analyze the fundraising proposal. The purchase of will also open on the 26th of the month.

On the 28th, Capri Global Capital will hold a board meeting to discuss the rights issue.

Technical factors
Nifty formed a long negative candle in the weekly charts, which indicates sharp downward momentum in the market.

“Immediate support for the index is around 17700 levels followed by 17400 levels and resistance is capped at 18200 levels. We would wait on the sidelines and not commit to new longs yet,” said Apurva Sheth, Head of Market Insights, Samco Securities. .

FII flow
NSDL data shows FIIs have invested over Rs 7,200 crore in December. “FIIs are likely to turn cautious in the short term. Macro data from the US and Covid news will drive FII flows and markets in the short term,” said Dr VK Vijayakumar, Head of Strategic Investments.


(Note: Recommendations, suggestions, opinions and views given by experts are their own. These do not represent the views of The Economic Times)

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