Daily Markets Wrap - Dec 14, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty fell for the third consecutive session on Dec 14, though it did not close at the intra day low. Nifty opened gap down in line with other Asian peers, soon began to rise but faced profit taking. After making an intra day low at 1055 Hrs, it rose. Later it gave up some of these gains. At close Nifty was down 0.25% or 43.3 points at 17325.

On a day when the volume son the NSE were in line with recent averages, Power, Oil & Gas and Capital Goods indices rose the most while Telecom, FMCG and Auto indices fell the most. BSE Smallcap index ended flat while Midcap index was down 0.37%.

India's wholesale inflation spiked led by a rise in prices of food, fuel and power. Inflation as measured by the Wholesale Price Index stood at 14.2% in November on an annual basis, compared with a rise of 12.5% in October. Headline and core WPI inflation hit all-time highs in November. The unseasonal surge in vegetable prices as well as a rise in the inflation for egg, meat and fish, and condiments and spices, pushed primary food inflation to a 13-month high.

Asian stocks slipped on Tuesday as the spread of the Omicron coronavirus variant rattled investors who were already on edge ahead of a slew of central bank decisions this week. European shares rose on Tuesday but soon gave up the gains, even as investors looked beyond the spread of the Omicron coronavirus variant and sought to buy any dip in stock prices ahead of a slew of central bank decisions this week.

Nifty has formed a near doji pattern after a fall, suggesting that the near term weakness in the markets may be coming close to end. 17484 could be the next resistance for the Nifty while 17226 could be a crucial support below which downmove can accelerate.

Source : Equity Bulls

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DailyMarketsWrap HDFCSecurities Nifty