Weekly Market Recap
Last week based on the evidence provided by the market in terms of price, trend, breadth, and failed seasonality, I concluded that the bullish case scenario no longer appeared to be the case. And, this week we witnessed a meaningful correction in the market that marked the biggest weekly fall in 6 months.
In the week gone by the benchmark SENSEX incurred a whopping loss of 1492 points, or 2.43%, and closed below the 60K mark at 59845, similarly, NIFTY shed 462 points, or 2.53% to settle below the 18K mark at 17806. Whereas BANKNIFTY which remained resilient until last week turned out to be the weakest with a loss of 3.59%
Current Outlook
The stock market has always come up with ways for challenging investors and traders. What seems to be so obvious rarely works out, and what seems to be irrelevant surprises us, though, I would say technical gave us enough warning to exit from the long positions; especially last week’s action was quite alarming to unwind the buying positions.
NIFTY has already corrected more than 1000 points from its recent all-time high, but it still looks quite vulnerable. Leaving aside everything, it is quite apparent from the chart that NIFTY has had a quite wild swing in the past year. Knowing this fact, we should wait patiently for the price to settle instead to try to catch the falling knife.
As we are heading into the last week of the year, many of us are likely to hear the term “Santa Claus rally” but given the grim market’s performance in the last two weeks, it doesn’t give much hope for a potential rally.
Conclusion
Perhaps we will have an awful start to the new year 2023, however, at this juncture, the priority should be to protect the capital and pay attention to improving your money management process to more effectively manage the risk when you are wrong.
Feedback, comments, suggestion, or questions are welcome in the below comment section or at [email protected].
Be Patient; Be a Savvy Investor..!!
Pankaj