Nifty falls after CPI inflation rises! Is the fall here to continue?

Good Morning Everyone, Nifty has broken the important support of 17400 yesterday, which continues to show the strength of the bears in the market, and with the CPI inflation rising as per the data released yesterday, this week looks bearish for the short term.

The FIIs continued selling big and probably the retailers too joined in with the FIIs today taking the market lower. However, we can see Nifty bullish only when it crosses 17600 with power.

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On the daily chart, Nifty has formed a bearish candle, indicating weakness coming ahead.

Index Watch:

All indexes fell yesterday as the VIX rose up by 3% which indicates volatility and fear in the market.

Sector Watch:

Every sector closed in red with heavy selling, Only IT was in green but then it was led by the Midcap stocks & TechM.

Top Gainers:

Axisbank, TechM, SBILife led the day up more than 1-2%

Top Losers:

Bajaj twins (Bajaj Finance & Bajaj Finserv) fell the most, more than 2% followed by Reliance and Mahindra.

Global Markets:

The Dow Jones Industrial Average fell 313.98 points, or 0.87%, to 35,657.01, the S&P 500 lost 43.56 points, or 0.92%, to end at 4,668.46 points, while the Nasdaq Composite lost 220.88 points, or 1.41%, to 15,409.72.

Chinese stocks declined on Tuesday, tracking other losses in Asia-Pacific markets as the omicron variant returned to focus. Meanwhile, bitcoin prices continued to tumble after some losses overnight.

Hong Kong’s Hang Seng index led losses, tumbling 0.91%. Japan’s Nikkei 225 lost 0.35%, while the Topix was up 0.12%.

Indian Market:

Trends on SGX Nifty indicate a gap-down opening for the broader index in India with a loss of 137 points. The country's retail inflation rate, which is measured by the Consumer Price Index (CPI), rose to 4.91 percent during the month of November 2021, as per the data released by the Ministry of Statistics and Programme Implementation (MoSPI) on December 13.

The inflation has increased sequentially, as it was recorded at 4.48 percent in October 2021. Year on year, however, a dip has been registered as the rate of inflation in November 2020 was 6.93 percent.

FII and DII data

Foreign institutional investors (FIIs) net sold shares worth Rs 2,743.44 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 1,351.03 crore in the Indian equity market on December 13

Stock Specific News:

Anand Rathi Wealth | The company will make its debut on the bourses on December 14. The price band for the offer has been fixed at Rs 550 per share.

Agro Phos India | Societe Generale sold 1.02 lakh equity shares in the company at Rs 24.59 per share on the NSE, the bulk deals data showed.

Beardsell | Promoter Anumolu Bharat sold 2,51,760 equity shares in the company at Rs 13.87 per share on the NSE, the bulk deals data showed.

Computer Age Management Services | Great Terrain Investment sold 20 lakh equity shares in the company at Rs 2,752.09 on the NSE, and 15 lakh shares at Rs 2,751.79 on the BSE, however, Plutus Wealth Management LLP acquired 6 lakh shares at Rs 2,750 per share on the BSE, the bulk deals data showed.

PB Fintech | The company approved incorporation of the wholly owned subsidiary to carry on the business of an Account Aggregator (AA). The AA has to be licenced by the Reserve Bank of India (RBI). The incorporation will leverage the facility without external dependency on another Account Aggregators for information gathering, cost saving / revenue housing and offer seamless solutions.

Devyani International | The company approved the Scheme of Amalgamation of subsidiaries Devyani Food Street and Devyani Airport Services (Mumbai) with itself.

Shalby | Prahlad Rai Inani has resigned as Chief Financial Officer and key managerial personnel of the company.

Shah Alloys | Income Tax Department carried out search operation at various locations of the company during the period from December 8 till December 11, 2021.

Stove Kraft | ICRA retained company's long term rating to A- and short term rating at A2+, but revised outlook to Positive from Stable.

Greenlam Industries | The company announced prominent plans for a fast-tracked expansion, and investment of Rs 950 crore over a period of 2-3 years, towards setting up of third laminate plant and foray into plywood and particle board business.

Vedanta | The company has taken steps to settle all disputes related to imposition of retrospective tax and accordingly has withdrawn cases in the Delhi High Court as well as before an international arbitration tribunal retrospective tax dispute with the government.

Wipro | The company launched Wipro VisionEDGE, to expand its sports, retail, transportation, and entertainment offerings.

Ircon International | The company has emerged as the lowest bidder for construction of 4 by 6 lane green fields Ludhiana Rupnagar NH205 K road project under BMP in Punjab on hybrid annuity mode. The value of the project is approximately Rs 1,107 crore, and the completion period of the project is 2 years.