Weekly Market Outlook for 2 Jan to 6 Jan

Weekly Market Outlook for 2 Jan to 6 Jan
Weekly Market Outlook for 2 Jan to 6 Jan

by Sachin Gupta Last Updated: Jan 02, 2023 - 11:28 am 5.1k Views

The nifty started the December series with a negative note and continued the downside move consecutively for the third week in a row. The prices were dragged more than 1000 points from the all-time high of 18887.60 to 17774.25, but in the last week of the month, nifty showed a good pullback from the bottom and managed to hold above 18000 levels with 1.68% weekly gains. While the Banknifty has corrected more than 2500 points from an all-time high of 44151 to 41569 levels, after that some short covering has been witnessed in the last week of the series and it has recovered sharply with 3.1% gains, closed at 43000 marks on the last trading day of the month and year too.


Nifty Today:


The nifty rollover was at 74%, lower than the previous month and also below the average of the past five months. On the expiry day, the highest put writing position was at 18000, followed by 17500 while on the CE writing exposure lies at 18200 & 18500 strike prices. 

Sectorally, PSU Baskets continued to soar, adding 11% gains, followed by Metal, Realty and Media gaining 7.9%, 5.3% and 4.2% each, while Nifty Pharma & FMCG were the laggards for the week. On the stock front, the top weekly gainers were IBULHSGFIN with 7.7% gains, followed by TATASTEEL, TITAN and JSWSTEEL with average gains of 4% over a week. While the top weekly losers were majorly from the Pharma & FMCG sector, like CIPLA, DRREDDY, HUL, BRITANNIA & UPL etc. 

On the daily chart, the nifty has reversed from the immediate support but still finding resistance at 18200 mark as it is a most important level to watch out further because the maximum pain has been noticed at this level only. As per Fibonacci Retracement, 38.2% is at 18200 and the highest writing is also at the same level. Moreover, on Friday session, the nifty also formed a Dark Cloud Cover candlestick pattern that suggests weakness for the near term. The price also moved below 50-days EMA on the daily timeframe. 


The benchmark index recovered well but ended tad below 18200


Weekly Market Outlook 2nd Jan to 6th Jan 2023


So, based on the above aspects, traders are advised to avoid aggressive positions until nifty close above the 18200 mark. Once the index close above it, we can expect an upside direction towards 18350/18500 levels. However, on the downside, if nifty moves below 18045 levels, it can test 17900 and 17700 levels.  


Nifty & Bank Nifty Levels:


Nifty Levels

Bank Nifty Levels

Support 1



Support 2



Resistance 1



Resistance 2




How do you rate this blog?


Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

About the Author

Mr. Sachin Gupta is a Senior Research Analyst at 5paisa, based in Mumbai. He has over 10 years of experience in Equity, Commodity research and strategies. 


Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.

Open Free Demat Account

Resend OTP
Please Enter OTP
Account belongs to

By proceeding, you agree to the T&C.

Latest Blogs
Bearer Cheque

Introduction A bearer cheque is an efficient and adaptable financial tool. It is a method of payment where the cheque is made out to the owner or bearer of the document. Bearer cheques enable the holder to cash or deposit the cheque without any requirement for identification or endorsement, in contrast to other cheques payable to a specific person or business.

  • Jun 06, 2023
Best Indicators for Intraday Trading

Introduction Intraday trading, also known as day trading, is a fast-paced trading strategy where traders aim to take advantage of short-term price fluctuations in financial markets. To succeed in this highly competitive arena, traders rely on various best indicators for intraday to make informed decisions and maximize their chances of profitability.

  • Jun 06, 2023
Nifty Outlook for 7 June 2023

Nifty started the day around 18600, but it witnessed selling pressure as the IT stocks corrected sharply and thus the benchmark index traded under pressure. However, the index recovered the losses from the lows towards the end and closed around the opening levels with a negligible loss.

  • Jun 06, 2023

Start Investing Now!

Open Free Demat Account in 5 mins

Enter Valid Mobile Number