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Below is the Daily Market Commentary 16 December 2021 By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services

Equity markets opened in green on the back of positive global cues. Selling pressure at higher levels capped the upside on the higher side with the index managing to close in marginal green. Nifty/Sensex closed ~0.2% higher. Market breadth turned negative in favour of the declining counters indicating weakness in selective sectors. Today apart from IT space, all other sectors are trading in the negative territory out of which Pharma, PSU Banks and Realty counters are witnessing the most weakness.

Global cues turned positive despite hawkish statement from US Fed as investors turned optimistic that Fed policy tightening will help fight inflation without derailing economic growth. Investors shrugged off the risk of new Covid-19 restrictions, focusing instead on the prospect of more reassurances from central banks. ECB in its policy meet today is also poised to unveil a gradual withdrawal from stimulus in the face of high inflation.

Overall market remains in a tight range with bearish undertone as selling pressure is intact at higher levels. Though the global cues have turned positive post the big event of Fed policy, continued FII selling, absence of any positive trigger and strong action in primary market is likely to continue putting pressure on the secondary market. Thus traders are advised to maintain a sell on bounce strategy for next few days until there is clarity on the domestic side.

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