Indian share market closed in red on last day of 2022. Sensex below 61,000

FMCG and Private Bank indices contributed the most to the drag and ended in the red. PSU Bank, Metal and Media remained strong and ended in the green.

Bajaj Finserv, Bajaj Auto, Titan, Coal India and ONGC were top indices gainers while SBI Life, Eicher Motors, Grasim and ICICI Bank were among the losers.

Volumes on the NSE continued to be on the lower side. Broad market indices outperformed ending in the positive as the advance decline ratio was up at 1.8:1.

The BSE Midcap index rose 0.37 percent while the Smallcap index ended with a gain of 0.76 percent.

World stocks were mixed (Europe down and Asia mostly up) on the last trading day of the year as markets digested U.S. data and the dismantling of China’s zero-COVID policy. India’s poor CAD number for fiscal second quarter weighed on the minds of participants.

“Nifty formed a bearish Dark cloud cover pattern on daily charts. However, on weekly charts, Nifty closed in the positive (higher by 1.68%) after a three week fall. 17774 now becomes an important support level to track. On up moves, 18255-18473 band remains a crucial resistance. Over the calendar year 2022, Nifty gained 4.3%, while for the month of December, it closed 3.5% in the negative,” said Deepak Jasani, Head of Retail Research, HDFC Securities.

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“The Nifty registered a new all time high on December 1 2022 and entered short-term correction phase thereon. The index corrected for 3 consecutive weeks post which it witnessed some relief in the last week of December 2022 as it received support near the 20 WMA. Thus the Nifty has posted a positive weekly close whereas for the month of December the index has formed a bearish outside bar & an Engulfing Bear candle on the monthly chart,” said Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas.

“This shows that the index can remain under pressure in the short term. The daily chart shows that a rising trendline is acting as a resistance along with the key DMAs. Thus the index can witness a short term consolidation in the range of 17800-18400. Once the short term consolidation phase is over then the index will be set to resume its larger up trend & can head towards the all time high of 18887 in the next couple of months.”

The Indian rupee ended 2022 as the worst-performing Asian currency with a fall of 11.3%, its biggest annual decline since 2013, as the dollar rocketed on the U.S. Federal Reserve’s aggressive monetary policy stance to tame inflation.

The rupee finished the year at 82.72 to the U.S. currency, down from 74.33 at the end of 2021, while the dollar index was headed for its biggest yearly gain since 2015.

“Indian Rupee appreciated by 0.10% on Friday on softness in US Dollar and risk-on sentiments in global markets. However, surge in crude oil prices and sustained selling by foreign investors put downside pressure on Rupee. FIIs have remained in the past 5 consecutive sessions. US Dollar declined on rise in risk appetite in global markets,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

“We expect Rupee to trade with a slight negative bias on expectations of recovery in US Dollar and recovery in crude oil prices. Concerns over a surge in COVID-19 cases may also put downside pressure on Rupee. Traders may remain cautious ahead of India’s fiscal deficit and US Chicago PMI. USD/INR spot price is expected to trade in a range of ₹82.30 to ₹83.30.”