Daily Market Commentary - Dec 16, 2021 - Bonanza Portfolio

Mr Vishal Wagh, Research Head

The nifty end is higher above 17200 amid volatility due to the outcome of the FED event and weekly options expiry. Among sectors, except IT and oil & gas, all other sectoral indices ended in the red. BSE midcap and small-cap indices are down 0.5 percent each. Nifty closed at 17248.4 whereas Sensex at 57,901.

Markets started with a gap-up opening but were unable to sustain the momentum and soon gave up the gains. If the index can sustain 17,080-17200, then we may see a bounce back till 17,400-17,450 levels. The index continues 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.

As far as domestic markets are concerned, it has been witnessing a downward pressure in anticipation of the Fed's policy decisions as there is likely to be a decrease in liquidity, which is un-correlated to economic recovery and growth. The US Fed communicated to aggressively unwind bond-buying and sees three rate hikes in 2022 and two each in the following next two years. Markets though were able to hold a crucial level of 17,200 but upside remains capped on relentless FII selling in capital markets which impacted traders' sentiment.

Bajaj Finance, Infosys, BPCL, Titan Company, and Reliance Industries were among the top Nifty gainers. Losers included Hindalco Industries, Cipla, Maruti Suzuki, ICICI Bank, and Hero MotoCorp.

Source : Equity Bulls

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DailyMarketCommentary Nifty Sensex BonanzaPortfolio