Markets started the session on a flat note on Monday in line with other global peers. During the first half of the week, Nifty tried recovering from previous Friday’s weakness. However, at higher levels, once again markets looked a bit nervous. The profit booking started on Wednesday after entering the sturdy wall of 18450 – 18500. This initial decline got converted into a brutal selling in last couple of sessions as COVID concerns once again started haunting market participants on the domestic front. In this course of action, we kept thrashing all key levels one after another. Eventually, Nifty concluded the week at 17800 by shedding over two and half a percent from previous weekly close.
It was certainly a disappointing end for our markets. Globally things did not look bad; but in our domestic markets, the reaction was lethal towards the fag end of the week. As we are about to step into the final week of the calendar year 2022, the world is celebrating the ‘Christmas’ festival and generally, around this time, it is best known for Santa rally in our markets especially the broader end of the spectrum. Unfortunately, Mid and small cap space are most affected pockets in last 2 – 3 sessions. It would be interesting to see whether market obliges its historical symmetry or not. The way markets have closed, the possibility is very miniscule. Since we have witnessed this sell off on the back of COVID fears, all developments with respect to this are likely to be crucial. Only if we see participants considering this as an overreaction, we may see relief in the coming week. However, in case of any aberration, we must prepare ourselves for lower levels.