NIFTY BANKNIFTY & STOCK OUTLOOK FOR WEDNESDAY 8 DECEMBER 2022

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Markets extended losses for a fourth straight day as investors dumped property and auto stocks on fears higher PMI issuance following RBI's repo rate hike could hurt demand. Markets traded lackluster for another session, losing over half a percent. After the initial surge, the Nifty index dropped inch by inch and settled in a narrow band until the end, finally settling at 18560. Unpredictable trading continued in local stock markets during the late afternoon session, After a 35 basis point hike in the repo rate to 6.25% by the Reserve Bank of India. The Reserve Bank forecast that inflation would fall below the 6% upper threshold by the March quarter of the current budget. Shaktikanta Das, Governor of the RBI, stated that the institution will pay Arjuna's attention to the changing inflation dynamics and will continue to deal with the price situation in a nimble and flexible manner. At the sector level, agribusiness remained in the spotlight after Reserve Bank Governor Shaktikanta Das said the industry was resilient and rabi planting was off to a good start. Due to the irregular rainfall, India expects kharif production to slow down. As Beijing declared it is drastically reducing its zero-COVID regulations and moving away from case-by-case isolation, all Asian markets are trading lower on the global front. Most trading in European markets was positive thanks to a rise in healthcare stocks. A mixed trend across sectors kept traders busy, with buying in the FMCG majors limiting the downside. The broader indices traded in sync with the benchmark, each losing nearly half a percent. Markets are beginning to drift lower but rotational buying on index majors across sectors is limiting the damage. Weak global cues may continue to exert pressure but we expect Nifty to hold the 18450-18550 zone. In the current scenario, traders should focus on trade management and favor sectors that show resilience for new buying. On the technical front, immediate support and resistance at Nifty 50 are 18500 and 18700 respectively. For Bank Nifty, immediate support and resistance lie at 43000 and 43500 respectively.