Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty closed flat after 5 days of gains, recovering smartly from the lows. Nifty opened lower and fell early in the morning. After making a higher low at 1130 Hrs, Nifty inched up through the day to close almost flat. At close Nifty was down 0.01% or 2.0 points at 18255.7.
On a day when the volumes on the NSE were in line with recent average, Realty, Capital Goods and IT indices rose the most while Metals Telecom, FMCG and Healthcare indices lost the most. BSE Midcap index rose 0.22% while Smallcap index rose 0.50%.
Stock markets in Asia yielded to the panic of an imminent interest rate hike scenario and recorded major losses on Friday. European stocks dropped in early trading on Friday after more Fed policymakers signalled they will start to raise U.S. interest rates in March to combat inflation.
On Friday, China posted a record trade surplus in December and in 2021 overall, with exports growing 20.9% year-on-year, slightly above expectations. Imports came in at 19.5%, a sharp fall from the big rise of 31.7% seen in November.
According to the latest data from the UK Office for National Statistics (ONS), gross domestic product (GDP) grew 0.9% during the month, its sharpest growth since June, and ahead of economists expectations of 0.4%.
India's wholesale inflation eased from its record high as a fall in prices of manufactured products, fuel and power offset costlier vegetables. Inflation, as measured by the Wholesale Price Index, stood at 13.56% in December against 14.23% in November, the highest reading since 1991.
Nifty rose for the fourth consecutive week rising 2.49% in the longest winning streak since the week ended September 24, 2021. Nifty is now close to 18500-18600 resistance band. Nifty has made a near double top in the 18272-18287 band. A breach of this is necessary for the Nifty to continue its upmove. On falls 18120-18130 band could provide support.