Daily Markets Wrap - Dec 13, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty ended sharply lower on Dec 13 despite positive global cues. Nifty opened gap up in line with other Asian markets and made an intra day high at 0955 Hrs. It later sold off and ended almost near the intra day low. At close, Nifty was down 0.82% or 143 points at 17368. In the process, Indian markets were the worst performing markets in the Asian region.

On a day when the volumes on the NSE were higher than recent average, Realty, Oil & Gas, Telecom and FMCG indices lost the most while Consumer Durables index barely managed to end in the green. BSE Smallcap index ended 0.24% higher while Midcap index ended 0.53% lower.

Asian stock markets are trading mostly higher on Monday, following the broadly positive cues from Wall Street on Friday, on a spike in commodity prices and easing worries about the coronavirus Omicron variant's impact on global economic growth. On Friday, Chinese leaders promised tax cuts and other aid to entrepreneurs at an annual planning meeting that emphasized maintaining stability after economic growth fell to an unexpectedly low 4.9% over a year earlier in the latest quarter. European shares rose on Monday, lifted by economically sensitive sectors ahead of a wave of central bank policy decisions that could potentially include an early end to U.S. stimulus.

Nifty formed a bearish engulfing pattern on Dec 13. Advance decline ratio was however even. The fact that Nifty could not benefit out of the positive sentiments elsewhere is worrying. Ahead of the bunch of central bank meets this week and the approaching calendar year end, FPIs seem to be taking profits and reducing their positions. 17534 could now be the resistance while 17252 could be the support.

Source : Equity Bulls

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