Nifty 50 Forecast: Recovers to Kick off the Week – 13 December 2022

The 50-Day EMA sits just above the INR18,000 level, a large, round, psychologically significant figure that has also been significant resistance previously. Because of this, I think quite a bit of market memory could come into the picture, offering a bit of value that people are willing to take advantage of. I suspect that we will continue to see a bit of a listless drift around as we wait to see what happens with a couple of major central banks are weak, and of course, the volume starts to dry up. As we are heading towards the holidays, it will make large moves less likely, barring some type of unexpected or unforeseen announcement.

Keep in mind that the low liquidity can also make for big moves, but that will be through the prism of markets that are surprised by something and don’t have enough participants to have stable moves. With that being said, I suspect this is a situation where it is a “buy on the dip” type of situation, but not necessarily one that is going to have massive gains over the last 3 weeks of the year.

The fact is that the Indian stock exchange is in an uptrend, and that’s really all you need to know. I would not go “all in” into the Nifty 50 at this time of year, just as I would say about any other market. Nonetheless, we most certainly have an upward bias, and I just don’t see how those changes anytime soon. Keep in mind that China continues to suffer, which of course is going to be a major benefit for India, as it is looking to replace China as the world’s factory over the next couple of decades. Ultimately, I think this market is going to go looking toward the INR19,000 level, but that’s probably a story for January.

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