On the last trading day of 2022, Indian headline equity index Nifty charts today showed the formation of a Bearish Engulfing type candle pattern. Analysts say that having moved in a broader range of 18200-17950 levels in the last few sessions, the probability of further consolidation is likely

Now, the index has to continue to hold above 18181 zones, for an up move towards 18350 and 18442 levels whereas supports are placed at 18081 and 18018 levels, said Chandan Taparia of Motilal Oswal.
Option data suggests a broader trading range in between 17700 to 18600 zones while an immediate trading range in between 17950 to 18400 zones.

"The domestic market trend during the week was influenced by the movements of its global counterparts. Markets wavered between gains and losses as global woes over the recession and COVID spread continued to persist. US trade deficit data suggested strength in the economy, raising uncertainty about the Fed’s tightening stance. On the other hand, steps towards the reopening of the Chinese economy increased the prospects for demand recovery. The ongoing volatility is expected to be sustained in the near-term because of high interest rates and a slowing economy. We believe that value buying is the theme of 2023, with a focus on domestically oriented sectors and buying on dips. Fair valuation, steady earnings, and a robust demand scenario will be the cutting parameters."
- Vinod Nair, Head of Research at Geojit Financial services