The Indian benchmark indices ended higher for the second consecutive day on December 14 amid buying across the sectors, positive global markets, better inflation data points and anticipation of a slower rate hike by the Federal Reserve, due tonight.
At close, the Sensex was up 144.61 points or 0.23Â percent at 62,677.91, and the Nifty was up 52.30 points or 0.28Â percent at 18,660.30.
After a positive start, the benchmark indices remained in the green and extended the gain as wholesale inflation for the month of November 2022 came to a 21-month low at 5.85 percent. However, profit booking in the second half erased most of the intraday gains.
Also, the less-than-expected rise in US inflation print for a second straight month in November and the sharp fall in Britain's annual rate of consumer price inflation in November to 10.7 percent, slipping from October's 41-year high of 11.1 percent, boosted the sentiments.
"Better-than-expected inflation readings from major global economies, combined with an increased appetite for IT stocks, aided the domestic market's bullishness," said Vinod Nair, Head of Research at Geojit Financial.
"US CPI inflation easing to 7.1Â percent in November will lower the chances of the Fed being hawkish. Though the Fed is largely expected to raise rates by 50 basis points, their comments on future inflation and rate actions would dominate market movements," he added.
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Stocks and sectors
| Index | Prices | Change | Change% |
|---|---|---|---|
| Sensex | 57,428.18 | -561.72 | -0.97% |
| Nifty 50 | 16,926.85 | -173.20 | -1.01% |
| Nifty Bank | 39,180.80 | -417.30 | -1.05% |
| Biggest Gainer | Prices | Change | Change% |
|---|---|---|---|
| BPCL | 359.30 | 7.90 | +2.25% |
| Biggest Loser | Prices | Change | Change% |
|---|---|---|---|
| Bajaj Finserv | 1,238.10 | -63.65 | -4.89% |
| Best Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty FMCG | 45055.10 | 196.80 | +0.44% |
| Worst Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Metal | 5438.90 | -163.70 | -2.92% |
Hindalco Industries, ONGC, UPL, Tech Mahindra and JSW Steel were among the biggest Nifty gainers, while losers were Nestle India, ICICI Bank, Bharti Airtel, HUL and Asian Paints.
Among sectors, except the Nifty FMCG (down 0.4 percent) all other indices ended in the green with metal, and information technology indices up 1 percent each and pharma, PSU bank, energy, and auto indices gained 0.5 percent each.
The BSE midcap and smallcap indices added 0.6 percent each.
On the BSE, metal and realty indices rose 1 percent each, information technology and capital goods indices up 0.9 percent each, and power and healthcare indices up 0.5 percent each. However, the FMCG index shed 0.37 percent.
Among individual stocks, a volume spike of more than 600 percent was seen in Vodafone Idea, Punjab National Bank and Colgate Palmolive.
A long build-up was seen in Vodafone Idea, RBL Bank and Indiabulls Housing Finance, while a short build-up was seen in Colgate Palmolive, Page Industries and Abbott India.
Bharat Forge, HCC, Abbott India, Axis Bank, Karnataka Bank, Jyoti and South Indian Bank touched their 52-week high on the BSE.
Outlook for December 15
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
There was caution amongst the investors ahead of the US FOMC meet outcome and traders kept low profile by taking selective bets in metal and realty stocks.
Technically, the Nifty has formed a small bearish candle which is indicating indecisiveness between the bulls and bears.
For the bulls now, 18,700 would act as a crucial resistance zone. The fresh uptrend rally is possible only after the dismissal of 18,700, above which, the index could move up to 18,800-18,850.
On the flip side, 18,620 could be the immediate support level for the index and below the same, a quick intraday correction is likely and the index could slip to 18,520-18,475.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas:
Continuing with the positive momentum from the last couple of sessions, the Nifty opened gap up on December 14. Despite multiple attempts, however, it couldn’t build upon the early gains. Fibonacci retracement shows that the index has done deep retracement of the entire recent decline and has reached the 61.8 percent retracement mark.
The Nifty formed a distribution throughout the day near the key Fibonacci level and moved lower towards the end of the session.
Overall structure shows that the index is still in short-term consolidation and can trade around 18,700-18,300 over the next few sessions.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
