Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty continued its downtrend on Dec 06 after a flat close on the previous day. It opened gap down and remained in a range through the day before closing 0.29% or 54.3 points lower at 18642.75. Negative Asian cues pushed Indian indices lower. Broad market indices fell more even as the advance decline ratio fell to 0.7:1. IT stocks came under selling pressure following overnight weakness on Nasdaq and fears of continued rate hikes despite the fact that India Rupee fell about a percent on Dec 06. Global markets struggled for direction Tuesday as traders weighed prospects for a slowdown in the pace of US rate hikes against data that shows tighter policy may be needed for longer.
The World Bank on Tuesday revised upwards its GDP growth forecast for India to 6.9% for 2022-23 (from 6.5% made in October 2022), saying the economy was showing higher resilience to global shocks. On the other hand, Fitch now expects world GDP to grow by 1.4% in 2023, revised down from 1.7% in the September 2022. Nifty could fall some more towards 18442-18535 band in this move in the near term. On upmoves, 18696 could offer resistance.