Market witnessed corrections due to weak global cues
Last Updated: 27th December 2022 - 09:32 am
The nifty index opened positively on Monday and sustained at highs for the day, but from the next trading session, we witnessed further corrections due to weak global cues on the account of rising Covid-19 cases in China and recession fear after the Fed statements on interest rates. The Nifty index fell sharply in the last three trading days of the week and settled in the red with a weekly loss of around 2.5% from the prior week.
The nifty index slipped below the Trendline and reached its significant support of 100-days EMA at 17800 and 50% Retracement Levels. On the last trading day of the week, all the nifty indices were in red with a sharp downfall. While few Pharma stocks were showing some gains. On the options front, the maximum CE OI was at 18000 strike price followed by 18200, while on the PE side, the maximum OI was around 17800 followed by 17600 strike prices. In the advance/decline ratio, out of 2000 stocks, more than 1600 were in the negative zone. However, in the FII/DII activities, we witnessed good participation from the DII side as they were the prime buyer throughout the week in the cash market. The net FII+DII buying was around 7564 crores in just one week.
So, based on the above data, traders are advised to look for buying opportunities in the index as well as focus on stock specific action in the Banking, Metal & Pharma.
The traders should also keep an eye on the coming data like Goods Trade Balance, Wholesale Inventories, and Unemployment Claims from the U.S.
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