Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities
Stocks at Dalal Street went for a toss, along with other global markets, as there is chatter all across the globe that the Fed may not change its hawkish tune so soon. The dot plot showed that the terminal rate projection rose to 5.1% from 4.6% in September.
Inflation remains a key concern and the central banks across the globe will try hard to fight against it. Technically, Nifty’s next key support is seen at the psychological 18,001 mark, while the immediate hurdle is at 18,697 mark.
Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services:
Domestic equities slipped into negative territory following US Fed hawkish commentary and weakness in global markets. Nifty open gap down and closed with loss of 146 points (-0.8) at 18269 levels. Broader market too saw some selling pressure with Nifty midcap 100 down 1.6% while smallcap 100 down 0.6%. All sectors ended in red with PSU bank down more than 3%.
Markets seems to have taken pause after making new highs with Nifty down by 3%. Markets are likely to remain in consolidative range due to lack of triggers in the near term. Also lower participation from institutional investors due to upcoming year-end holidays would keep the markets lackluster. Though investors would keep eye on US Home Sales and GDP (QoQ) numbers to be released next week.
On sectorial front, sugar stocks are likely to remain in lime light on after news reported, government might consider increasing sugar export quota for the current 2022-23. However, some selling might be seen in Banking stock especially in PSU banks on account of profit booking after the sharp rally in last few months.
Amol Athawale, Deputy Vice President – Technical Research at Kotak Securities
The risk-off sentiment continued on Dalal Street as the US Fed’s hawkish comment-induced global correction gave local investors the reason to further reduce their equity exposure. Foreign investor selling seemed to have once again gathered pace, which is reflecting badly on local stocks in the last few sessions. While there was no respite from the bears, Dow Futures witnessing a steep fall dampened the market sentiment leading to a broad-based selling.
Technically, lower top formation on daily charts and double top reversal formation on intraday charts is indicating further downside from the current levels.
In addition, the Nifty not only broke the important support level of 18,400 but closed below the same. The next support level for the index would be 50 day SMA or 18,100-18,000 levels. On the flip side, 18,400 could act as an immediate resistance zone for the index, and above the same the index could retest the 20-day SMA or 18,550. In case of further upside, the index could move up to 18,700.
Vinod Nair, Head of Research at Geojit Financial Services:
Global markets extended their rout as the ECB and BoE followed the Fed in raising policy rates by half a percent while maintaining a hawkish tone on inflation.
The aggressiveness of central banks in combating inflation has raised concerns about the global economy’s health. Despite attempts to recoup losses, a lack of global support pushed the indices back into negative territory.
Rupee Close:
Indian rupee closed lower at 82.86 per dollar against previous close of 82.76.
Market Close: Benchmark indices ended lower for the second consecutive session on December 16.
At Close, the Sensex was down 461.22 points or 0.75% at 61,337.81, and the Nifty was down 145.90 points or 0.79% at 18,269. About 1391 shares have advanced, 2026 shares declined, and 125 shares are unchanged.
Dr Reddy’s Laboratories, M&M, Adani Ports, Asian Paints and BPCL were among the biggest Nifty losers, while gainers included Tata Motors, HDFC Bank, HUL, Tata Steel and JSW Steel.
All the sectoral indices ended in the red. The BSE midcap and smallcap indices lost 1 percent each.
Dow, Nasdaq futures down 1% each
Nifty Auto index slipped 1 percent dragged by M&M, Ashok Leyland, Sona BLW Precision Forgings
BSE Realty index fell 1 percent dragged by Prestige Estate, Sobha, Oberoi Realty
Himatsingka Seide to raise Rs 608 crore via equity, NCDsHimatsingka Seide approved issuance of securities in one or more tranches, worth up to USD 13 million or Rs 108 crore, and issuance of non-convertible debentures up to Rs 500 crore, to identified investors.
BSE Information Technology index declined 1 percent dragged by Cerebra Integrated Technologies, Affle (India), Xelpmoc Design and Tech
