Weekly Update – 31st December 2022

NIFTY50

After a sharp fall last week where the Nifty lost 2.53%, this week saw the Nifty rebound. Starting with the first trading day on Monday Nifty began its upward movement and trended upward till Thursday. Friday saw some weakness with the Nifty closing 0.5% lower than Thursday, however, every week the Nifty closed 1.7% higher than the previous week.
Nifty is now trading above its key moving averages i.e., 20 EMAs and 50 EMAs indicating strength that is likely to continue in the next week also. The Nifty tested its support level of 17800 last week and this remains the support level for Nifty even at this point. For a further upside, the next resistance level is at 18400, which if crossed this week can see the Nifty head further towards 18600 in the coming weeks.
This was also the last trading week of the calendar year 2022. Throughout the year, Nifty has been volatile and closed the year with a gain of 4% this year. There is optimism that the next year’s returns would be higher than the returns of this year.

Nifty50 Weekly Chart

BANK NIFTY

Bank Nifty also saw a fall of 3.6% last week. Like the Nifty, Bank Nifty also made a rebound this week. Bank Nifty performed better than the Nifty gaining 3.2% this week, nearly covering the entire fall of the last week.
The support level for Bank Nifty remains at the lowest level where it touched last week at 41600. The next resistance level for Bank Nifty is at 43700, which it is likely to touch in the coming week. Bank Nifty is also trading above the 20 EMA and 50 EMAs indicating strength at these levels.
Bank Nifty was one of the best-performing indices this year with a gain of 22.6%. This was aided due to the improving performance of PSU banks which saw a rise in their profits along with a reduction in the NPAs.

Bank Nifty Weekly Charts

Top Performing Sector of the Week

⦁ Nifty PSU Bank
– Indian Overseas Bank – up 22.5%
– Union Bank of India – up 19.0%
– Bank of Maharashtra – up 15.7%
– Canara Bank – up 14.3%
– Bank of India – up 14.0%

Nifty PSU Bank is also the best-performing index this year with a whopping 73.4% returns. The clean-up initiated by the Central Government in reducing the NPAs of these banks along with technology adaptation by these banks has played out this year. This sector is expected to further deliver above average returns next year also.

Nifty PSU Bank Index Weekly Chart

Worst Performing Sector of the Week

⦁ Nifty Pharma
– Cipla – down 3.9%
– Lupin – down 3.1%
– Granules India – down 2.9%
– Ipca Laboratories – down 2.5%

Nifty Pharma index was one of the worst-performing indices of 2022, with a negative return of 10.9% at the end of the year. A weakening Rupee impacted export-oriented pharma companies. Analysts are hopeful that this sector will improve its performance next year.

Nifty Pharma Weekly Chart

Important News

⦁ Canara Bank looks to grow its business to Rs 30 trillion in five years. After crossing business growth of Rs 20 trillion in December, public sector lender ⦁ Canara Bank is looking to grow its business – deposits plus advances – to Rs 30 trillion in about five years.
⦁ Oyo IPO is likely to get delayed by a quarter as SEBI seeks to refile with updated information.
⦁ IEX gets shareholders’ nod to buy back shares worth up to Rs 98 crore. The board of directors in its meeting on November 25 had approved the cash offer for the buyback of equity shares of the face value of Rs 1 each at a maximum price of Rs 200 per share for an aggregate amount of up to Rs 98 crore.
⦁ Govt hikes interest rate on post office savings schemes by up to 1.1bps. While the interest rate for popular PPF and girl child savings scheme Sukanya Samriddhi were retained, rates for deposits up to 5 percent as well as NSC, senior citizen savings scheme and Kisan Vikas Patra (KVP) where income accruing is taxable have been hiked by up to 1.1 percentage points
⦁ ICICI Prudential Life Insurance has crossed Rs 2.5 lakh crore in assets under management, nearly 8 years after it first crossed the milestone of ₹1 lakh crore AUM, and 22 years since it started operations in December 2000
As we close this year, we saw a few surprises and some disappointments from different sectors. The next year will also throw up newer surprises and disappointments. Keep track of your investments with the Univest app, which will help identify performing as well as nonperforming sectors and stocks with timely entry and exit.

Wishing all the users of the Univest app a very Happy New Year!!

ABOUT THE AUTHOR

Sagar Wadhwa

Sagar Wadhwa is a Senior Equity Research Analyst who is a key member of the research team at Univest. He has extensive knowledge and expertise in the stock market, financial analysis, and investing and uses this expertise to provide valuable insights to the research team.

Note – This channel is for educational and training purpose only & any stock mentioned here should not be taken as a tip/recommendation/advice

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