Daily Markets - Dec 16, 2020 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian equity benchmark indices broke out of a three day sideways move to close near the highest point of the day on Dec 16 making another record high. The Nifty opened gap up and post making an intraday low at 1300 Hrs, rose again to close near the intraday high. At close the NSE Nifty 50 index rose 0.85% to end at 13,682.

Among sectors, Realty, Metals, Auto and Pharma were the main gainers while PSU Banks were the main loser. Broad market indices i.e. smallcap and midcap indices rose more than the Nifty.

World stocks rose to record highs on Wednesday while the safe-haven dollar reached its lowest in more than two and a half years on the prospect of effective coronavirus vaccines and more U.S. fiscal stimulus.

Markets will look to the U.S. Federal Reserve later to see whether it hints at an extension of its stimulus programme and it thinks the economy will suffer a double-dip recession or is on the cusp of a vaccine-inspired boom.

European stocks and the euro also got a boost after PMI economic data (Eurozone PMI at 49.8 in December vs 45.3 in November) came in better than expected and the European Central Bank decided on Tuesday to let euro zone banks start paying dividends again if they have enough capital.

Nifty continues its uptrend with a series of upgaps which are yet to be filled. This shows the strength of the current upmove and also indicates that whenever the correction starts all the recent upgaps may have to be filled. 13800-13900 is the cluster resistance zone for the Nifty.

Source : Equity Bulls

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