Mr. Deepak Jasani, Head of Retail Research, HDFC Securities.
Following the weak cues from the US markets, Nifty opened gap down on Sept 14, but showed remarkable recovery to wipe off all losses by 1335 Hrs. Late profit taking pulled down the Nifty from intra day highs. At close, Nifty was down 0.37% or 66.3 points at 18003.8. Indian markets fell the least in the Asian region.
Among sectors, Metals and Bank indices rose the most, while IT and Oil & Gas indices fell the most. Broad market continued to be subdued as advance decline ratio was negative at 0.72:1 and Midcap and Smallcap indices ended marginally in the negative.
Markets in Asia Pacific fell on Wednesday, following a major drop in US markets as investors reacted to American inflation going higher than expected. A semblance of calm returned to markets on Wednesday in Europe after the carnage sparked by hotter-than-expected American inflation that prompted investors to reassess the outlook for interest rates and economic growth. European equities were mildly lower, tracking a plunge in US stocks.
India's wholesale inflation fell to the lowest since September last year, led by a broad-based decline in prices of most commodities. Inflation-as measured by the Wholesale Price Index-stood at 12.4% in August compared with 13.9% in July 2022 and 11.64% in August 2021.
Nifty recovered very well from the morning lows but succumbed to afternoon selling. It faced resistance from the high of the previous day. Now 18088-18092 could be the resistance for the near term while 17765 could be the support. Broader market is showing the first signs of distribution.