Daily Market Wrap - Dec 6, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty fell sharply on Dec 06 as mixed Asian markets highlighted valuation concerns in Indian equities. Nifty opened lower and fell through the day on Dec 06. At close Nifty was down 284.5 points or 1.65% to 16912. Nifty closed at the lowest in 3 months.

On a day when the volumes on the NSE were a little below recent average, IT, Telecom, Auto, Realty, Healthcare, Oil & Gas and FMCG indices have fallen the most. Advance decline ratio is sharply negative.

Shares were mixed in Asia on Monday after troubled Chinese property developer Evergrande warned late Friday it may run out of money. European stock markets climbed higher on Monday, struggling off concerns about the Omicron COVID-19 variant. China's central bank said on Monday it would cut the amount of cash that banks must hold as reserves (RRR cut 50 bps), its second such move this year, releasing 1.2 trillion yuan in long-term liquidity to bolster slowing economic growth amid persistent COVID-19 cases.

Nifty continues its downtrend and the next level of support is 16722-16782 band. On upmoves 17026-17051 could act as a resistance. The downtrend may be close to its end going by the number of days it has lasted so far (33). However the upward recovery may be slow.

Source : Equity Bulls

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