CLOSING BELL: Indices close in the red, Nifty above 17,300; power, pharma gain, auto falls

Benchmark indices opened negative and witnessed volatility amid weakness seen in global markets. While indices managed to recover from the day's low, they still ended the day in red with Nifty/Sensex down 43/166 points (around 0.3%). With several Central Bank meetings this week, sentiment in the market remained cautious. The broader market were in-line with benchmark and closed with negative bias.

Global markets continued to remain mixed as investors remains cautious about the economic risks posed by potentially reduced central bank support and the omicron COVID-19 variant. The US Federal Reserve is scheduled to announce its latest interest-rate decision on Wednesday, followed by the European Central Bank (ECB) and the Bank of England on Thursday. Global oil markets have returned to surplus and face an even bigger oversupply early next year as the omicron variant impedes international travel, as per the International Energy Agency.

: Nifty started off the session on a weak note moved lower towards the 17200 mark which was a previous gap support and the 100 SMA. The moment prices tested 17225-mark bulls came in and pulled the index up. Finally, the index ended the session at 17324 with a Doji like candle pattern and a loss of 0.25 percent.

Nifty ended the session on a very indecisive juncture as it is placed between the 20 and the 100 Day SMA. In tomorrow’s session if the index manages to breach above 20 Day SMA (17380), we will prefer to go long with a target of 17500 and 17650 with a strict stoploss of 17225 (daily low) on hourly closing basis.

Markets consolidated in a range and ended marginally lower, in continuation to the previous session’s fall. Weak global cues triggered a gap down start however mixed trends across the sectors capped the movement thereafter. Amongst the sectoral indices, telecom, auto and consumer durables ended with losses whereas oil & gas, capital goods and healthcare ended with decent gains.

Participants are maintaining a cautious stance ahead of the US Fed meeting outcome, which is scheduled on December 15 and we may see a similar trend on Wednesday as well. On the benchmark front, a decisive fall below 17,150 in Nifty would further fuel the negative bias. We reiterate our view to limit leveraged positions and maintain positions on both sides.

: Nifty swings — ends a choppy and volatile session lower. After a panic start, the benchmark Nifty capped a volatile day of trading to finish lower. The positive takeaway from the trading session was that Nifty lacked follow-through on the sell side despite sizzling inflation in the US, tapering chatter and the relentless selling by the FIIs camp. The Fed meet outcome to trickle on December 15 was eyed too.
Technically speaking, the path of least resistance still continues to be up. That said, confirmation of strength is only above 17641 mark. Above 17641 mark, a brighter trading is quite likely as the buying madness will be on display in herd-like behaviour that should drive Nifty’s prices towards the psychological 18000 mark even as the biggest support for trading is seen at 17221 mark.

: Nifty opened negative and after weakness in the initial tick, it recovered from its lower levels. It moved in a choppy manner in the second half of the session and closed negative with losses of around 45 points. It formed a small bodied Bullish candle on daily scale and closed near its 100 SMA. Now it needs to cross and hold above 17350 for an up move towards 17500 and 17600 zones whereas on the downside, support can be seen at 17200 and 17100 zones.

Bank Nifty opened negative and after a decline towards 36500, it saw a pullback move towards 37000 zones. It formed a Bullish candle on daily frame with long lower shadow indicating buying was visible at declines. Now it has to hold above 37000 for an move up towards 37300 and 37500 zones whereas on the downside, support can be seen at 36500 and 36300 zones.

Key indices lingered in negative territory for major part of the trading session in a range-bound session as anxious traders are waiting for the outcome of the US Fed meeting even as nervousness continued over rising cases of Omicron in several countries. Technically, the market has completed one leg of correction and is currently trading near the important retracement support level. After a sharp correction on intraday charts, the Nifty has formed a higher bottom formation indicating high chances of a pullback rally from current levels.

For day traders, today’s day low or 17220 would be the key support level. Trading above the same, the index could move up to 17400-17475 levels. On the flip side, dismissal of 17220 could trigger further weakness up to 17175-17150 levels.

The Reserve Bank of India (RBI) on December 14 issued prompt corrective action (PCA) framework for non-banking finance companies (NBFCs) by introducing three risk threshold categories.

PCA refers to restrictions imposed by the banking regulator on a lender's operations if the key financial parameters of these entities fall below a certain limits. Till now, the RBI used to impose PCA only on banks. The RBI had issued the revised Prompt Corrective Action (PCA) Framework for Scheduled Commercial Banks (SCBs) on November 2, 2021.

Nifty open gap down and showed a very sideways move throughout day with given close at 17,325 with minimal and formed a Doji sort of candle pattern on daily chart represents indecision in the markets. The overall range for Nifty is coming at 17,500 on the higher side and 17,000 on the lower side. Right now Nifty is trading in between, so one can expect a sideways moment in coming sessions and final direction will be clear once we see either side breakout from mentioned range. Immediate support is coming near 17250-17200 zone and resistance is coming near 17400-17500 zone.

Due to elevated levels of inflation and weak Asian markets, the domestic indices extended losses ahead of the US Fed policy announcement. Offsetting a favourable base effect and cut in levies on fuel, India’s CPI inflation rose to 4.91% YoY in November as higher input costs forced producers to hike prices. Moreover, India’s wholesale inflation soared to a 12 year high of 14.23% YoY underpinned by mineral oil, base metals, crude petroleum and natural gas.

The Nifty is trading within the range of 17150 and 17600. Both levels are of extreme importance as a break of 17150 could take the index southward while a close above 17600 would signal an upward trajectory. Until then traders should be cautious and watchful and not indulge in hasty decision-making.

NATCO Pharma through its affiliates is proposing to enter into an agreement to acquire Dash Pharmaceuticals LLC subject to satisfactory completion of

due diligence, execution of definitive agreements and compliance with statutory requirements. Dash is a front-end pharmaceutical sales, marketing and distribution entity based in New Jersey, USA which is expected to have approximate net sales of USD 15 million for the year ending December 2021. This acquisition provides NATCO with a front-end to engage with its customers directly in the USA which is the largest pharmaceutical market in the world, the compay said in an exchange filing. Natco Pharma closed at Rs 898.85, up Rs 15.65, or 1.77 percent.

Rupee ends at 75.87 per dollar against December 13 close of 75.77 per dollar

: Benchmark indices ended the session on December 14 on a negative note with Sensex down 166.33 points or 0.29% at 58117.09, and the Nifty shedding 43.40 points or 0.25% at 17324.90. About 1695 shares have advanced, 1462 shares declined, and 109 shares are unchanged.

Power Grid Corporation, Nestle India, Axis Bank and Dr Reddy's Labs were the top gainers while ITC, Bajaj Finance, Kotak Mahindra Bank and Bharti Airtel were the top losers.

Among the sectors, power, pharma and oil & gas ended in the green while auto, FMCG and PSU Bank index ended in the red.