Daily Markets Wrap - Nov 22, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty fell for the fourth consecutive session falling the most in terms of points in 7 months. Nifty started to fall from opening time and bounced up 136 points from the intra day low made at 1430 Hrs. At close, Nifty was down 1.96% or 348 points at 17417. Indian markets are the worst performers in the Asian region today.

On a day when the volume son the NSE were a bit higher than recent average, All sectoral indices except Telecom ended in the red. Realty, Oil & Gas, Consumer Durables and Auto have fallen the most. Midcap and Smallcap indices fell 2.6-3%. Advance decline ratio was deeply in the negative.

Valuations concerns have resurfaced amongst FPIs even as the new age IPOs come under severe selling pressure. Concerns over government taking a step back on its reform agenda on the farm laws front, negative newsflow from Reliance and PayTMs' relentless fall spooked sentiments in a market where the other worries of inflation and interest rates are already taking a toll. A resurgence of coronavirus outbreaks in the U.S., Europe and some other regions is weighing on investor sentiment. Comments by advisers to the Chinese central bank about risks of "stagflation," meanwhile, have reinforced concerns about inflationary pressures.

Nifty has extended the downturn as expected but the fact that it did not close at its low is some consolation. 17360 and then 17190 could be the supports for Nifty while 17613 could be a resistance in the near term.

Source : Equity Bulls

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