Daily Market Commentary - Dec 15, 2021 - Bonanza Portfolio

Mr Vishal Wagh, Research Head

Nifty ends below 17,300, Sensex falls over 300 pts. Except for Auto, all other sectoral indices ended in the red, with IT, metal, realty, and PSU bank indices down 1 percent each. BSE midcap index fell 0.6 percent and small-cap index down 0.35 percent.

One more negative session as the index closed a day at 17221 with a loss of nearly one percent and formed a bearish candle on the daily chart. If the index can sustain 17,080-17200, then we may see a bounce back till 17,400-17,450 levels.

The index is expected to travel in the broad range of 17,000-17,650. The overall structure shows that the short-term consolidation is likely to continue further before the index prepares for a larger up move.

While foreign investors continued their selling spree, the Indian rupee has fallen to its lowest level since June 2020, which makes it an 18-month low against the US Dollar. The fall is largely driven by the fear of the rapid spread of the Omicron variant. All eyes will be on the US Fed meeting tonight and we're going to see the reaction in early trade on Thursday. While the majority expects that the committee would hold rates citing the possible challenges due to the new COVID variant, commentary on tapering, inflation and growth would be critical. Besides, we have weekly derivatives expiry scheduled, so expect choppiness to remain high.

Bajaj Finance, Bajaj Finserv, Adani Ports, ITC, and ONGC were among the top Nifty losers. Gainers included Sun Pharma, Kotak Mahindra Bank, M&M, Hero MotoCorp, and Maruti Suzuki.

Source : Equity Bulls

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