Indian indices ended lower for the fourth straight day on Wednesday after India's Monetary Policy Committee hiked repo rate by 35 basis points. The Sensex fell close to 300 points while the Nifty just about managed to hold the 18,550 mark.
Among the outperformers on Wednesday were Oil Marketing Companies that saw gains anywhere between 1-4 percent as crude prices continued to correct. Siemens was among the top gainers in the broader market after an order win, ending 5 percent higher.
In an interaction with CNBC-TV18 on Wednesday, Prabhudas Lilladher Chairperson & MD Amisha Vora said that the Chinese market may start bottom-fishing when it begins to trade at a 4-5 times price-to-earnings while the Indian markets are trading at 21-22 times price-to-earnings. "So a bit of shift in the middle of the year is one possibility. However we will continue to see a positive market, I don’t see huge cuts but a rangebound market,” she said.
What do the charts suggest for Dalal Street?
Two key triggers for Thursday's trading session will be the weekly options expiry and the state election results from Gujarat and Himachal Pradesh.
Rupak De of LKP Securities said that the Nifty slipped below its recent consolidation range on its hourly chart, suggesting waning bullishness. "The momentum oscillator is in a bearish crossover," he said.
Deepak Jasani of HDFC Securities sees the Nifty headed towards levels of 18,442 in the near-term while moves towards 18,591 on the upside may offer resistance.
Here are key things to know about the market ahead of the December 8 session:
SGX Nifty
On Thursday, Singapore Exchange (SGX) Nifty futures — an early indicator of the Nifty index — declined 17 points points or 0.1 percent to 18,654.5, thereby pointing to a subdued opening for the market.
Global Markets
Markets in the Asia-Pacific are trading mostly lower this morning as recession fears continue to weigh on sentiment. The Nikkei 225 and the Topix in Japan are trading with cuts of 1 percent while the Kospi is down 0.6 percent. MSCI's broadest index of Asia-Pacific shares outside Japan is trading 0.2 percent lower.
US markets ended mixed lower overnight with the S&P 500 declining for the fifth straight session. However, the Dow Jones managed to end flat with the Nasdaq ending 0.5 percent lower.
What to expect on Dalal Street
Rupak De of LKP Securities expects support for the Nifty on the downside at levels of 18,500 and 18,350. On the upside, resistance is seen at levels of 18,670 and 18,750.
Vinod Nair of Geojit Financial Services believes that high interest rates and a global slowdown can hurt corporate earnings forecast in the second half of the current financial year as well as financial year 2022. He also said that the market is currently trading at premium valuations and slower earnings growth will hurt market sentiment.
FII/DII activity
Ajay Srivastava of Dimensions Corporate Finance Services believes that investors need to be wary of investing in this market to get returns, which is risk-adjusted, higher than debt. "It's not about making 8 percent return in equity, that's not good enough, you got to make it a 16 percent return in equity or 20 percent on equity, to make it worth the while. And that's what I say is a little difficult process," he said.
Long build-up
Here are five stocks that saw an increase in open interest as well as price:
| Stocks | Current OI | CMP | Price Change | OI Change |
| HDFC AMC | 15,20,400 | 2,280.00 | 3.78% | 14.12% |
| Siemens | 22,06,875 | 2,932.60 | 5.29% | 9.78% |
| Power Finance Corp. | 4,90,97,800 | 143.20 | 2.95% | 8.23% |
| REC | 6,52,64,000 | 114.05 | 1.92% | 5.21% |
| AU Small Finance Bank | 69,69,000 | 670.9 | 2.84% | 4.03% |
Short build-up (Decrease in price and increase in open interest)
| Stocks | Current OI | CMP | Price Change | OI Change |
| Crompton | 43,77,000 | 357.40 | -2.14% | 13.94% |
| Alkem Labs | 2,29,000 | 3,075.00 | -0.95% | 7.51% |
| Delta Corp | 1,64,79,500 | 229.45 | -3.23% | 7.49% |
| Jubilant Foodworks | 1,39,43,750 | 541.50 | -3.13% | 6.87% |
| LTI-Mindtree | 16,98,300 | 4,728.70 | -2.68% | 5.78% |
Short Covering (Increase in price and decrease in open interest)
| Stocks | Current OI | CMP | Price Change | OI Change |
| Ramco Cement | 36,49,900 | 707.80 | 0.60% | -7.44% |
| Hindustan Petroleum | 2,21,85,900 | 235.00 | 4.00% | -4.51% |
| Chambal Fertilisers | 75,19,500 | 310.80 | 0.36% | -4.02% |
| Larsen & Toubro | 77,66,400 | 2,140.00 | 1.44% | -3.77% |
| Interglobe Aviation | 30,66,300 | 1,907.55 | 1.97% | -3.69% |
Long Unwinding (Decrease In Price & Open Interest)
| Stocks | Current OI | CMP | Price Change | OI Change |
| Escorts Kubota | 10,58,475 | 2,280.55 | -0.99% | -8.03% |
| PNB | 22,47,04,000 | 55.75 | -0.36% | -5.79% |
| Apollo Tyres | 1,47,52,500 | 317.05 | -1.38% | -5.02% |
| Whirlpool of India | 7,63,350 | 1,520.60 | -0.98% | -4.84% |
| Polycab | 10,01,400 | 2,710.20 | -0.37% | -4.66% |
First Published: Dec 8, 2022 7:19 AM IST
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