The key indices, however, posted annual gains of over 4% in 2022 to emerge as the world’s best-performing large market indices.
Here’s how analysts read the market pulse:
“The benchmark Nifty recovered smartly during the week, pairing more than 50% of the previous week’s loss. The index has formed a bullish harami pattern on the weekly chart, suggesting a bullish reversal. Besides, the index has closed above its 50-week exponential moving average.
“The momentum indicator RSI (14) on the weekly chart is in a bearish crossover. The 50 EMA and 200 DMA are in the bullish crossover. The trend for the short term is likely to remain bullish as long as it remains above 17,800 on a closing basis. On the higher end, resistance is visible at 18,350. A decisive move above 18,350 may induce a further rally towards 18,600/19,000. On the other hand, a decisive fall below 17,800 may weaken the trend,” Rupak De, Senior Technical Analyst at
, said.
“Nifty after a flat start accelerated the downfall in the last half hour and ended in the negative. At close, Nifty ended 0.47% or 85.7 points lower at 18,105.3. Volumes on the NSE continued to be on the lower side. Broad market indices outperformed ending in the positive as the A/D ratio was up at 1.8:1,” Deepak Jasani, Head-Retail Research-
Securities, said.
That said, here’s a look at what some key indicators are suggesting for Monday’s action:
US markets
U.S. stocks closed out 2022 lower on Friday, capping a year of sharp losses driven by aggressive interest rate hikes to curb inflation, recession fears, the Russia-Ukraine war and rising concerns over COVID cases in China.
Wall Street‘s three main indexes booked their first yearly drop since 2018 as an era of loose monetary policy ended with the Federal Reserve’s fastest pace of rate hikes since the 1980s. The Dow Jones Industrial Average fell 73.55 points, or 0.22%, to 33,147.25; the S&P 500 lost 9.78 points, or 0.25%, at 3,839.50; and the Nasdaq Composite dropped 11.61 points, or 0.11%, to 10,466.48.
European markets
European equity markets are ending 2022 with a whimper, as all the major bourses trade in the red on the year’s last day of trading. The STOXX 600 index is down 0.5%. The pan-European benchmark has fallen over 12% this year, its biggest yearly drop since a 13% decline in 2018.
Losses are broad-based across sectors with telecoms lagging, being dragged by a 2.7% drop in Telecom Italia shares after Italian PM Giorgia Meloni said the government wants to take control of the company’s fixed network assets.
Tech View: Long negative candle
A long negative candle was formed on the daily chart, which indicates a formation of bearish dark cloud cover type candle pattern. Formation of such a pattern after a reasonable upside bounce could indicate a reversal pattern at the highs. Having moved in a broader range of 18200-17950 levels in the last few sessions the probability of further consolidation is likely.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish bias on the counters of
, Anant Raj, , and Subex, among others.
The MACD is known for signaling trend reversals in traded securities or indices. When the MACD crosses above the signal line, it gives a bullish signal, indicating that the price of the security may see an upward movement and vice versa.
Stocks signaling weakness ahead
The MACD showed bearish signs on the counters of
, Digispice, , among others. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms
(Rs 1,009 crore), (Rs 867 crore), RIL (Rs 861 crore) and SBI (Rs 803 crore) were among the most active stocks on NSE in value terms. Higher activity on a counter in value terms can help identify the counters with highest trading turnovers in the day.
Most active stocks in volume terms
(Shares traded: 29.05 crore), (Shares traded: 15.23 crore), PNB (Shares traded: 11.52 crore), and (Shares traded: 25.1 crore) were among the most traded stocks in the session on the NSE.
Stocks showing buying interest
Shares of
, FACT, and , among others, hit their 52-week highs, which signals bullish sentiment on the counter.
Stocks seeing selling pressure
Shares of KFin Technologies, P&G Health and Chola Financial Holdings hit their 52-week lows, which signals bearish sentiment on the counter.
Sentiment meter favours bulls
Overall, market breadth favoured bulls as 2,195 stocks ended in the green, while 1,303 settled with cuts.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
