This Week in a nutshell (Dec 6th to Dec 10th)

Technical talks

NIFTY opened the week on 6th Dec at 17,209 and closed on 10th Dec at 17,511. Going ahead, the level of 17,350 is likely to act as strong support in the near term and the levels of 17,615 will act as immediate resistance levels.

Top gainers during the week were Nifty Media (+9.3%), Nifty PSU (+6.2%) and Nifty Realty (+4.6%) while no indices ended in the red.

Weekly highlights

• India’s airlines and airports are expected to lose Rs 19,5640 mn and Rs 5,1160 mn, respectively, in FY21 owing to significant disruption caused by the COVID-19 epidemic, according to the Minister of State for Civil Aviation V K Singh.
• Job openings in the United States increased in October, while hiring fell, indicating a deepening labour shortage. This might impede employment growth and the entire economy. On the last day of October, job postings grew by 431,000 to 11.0 million, indicating a rise in labour demand.
• New applications for US unemployment benefits fell dramatically last week, reaching levels not seen since 1969.
• Japan’s wholesale inflation touched a record 9.0 % in November, owing to pricing pressures caused by supply constraints and rising raw material costs.
• RBI Governor Shaktikanta Das announced that the MPC has opted to keep the inflation forecast at 5.3 per cent in FY21-FY22. The central bank maintained its cautious stance on growth, and with no major changes in headline inflation, it confirms the perception that it is watchful, rather than paranoid, about inflation.
• Dow futures rose about 3% as investors were less concerned over the new Covid omicron type.
• The foreign institutional investors (FII) sold equities worth Rs 92,020 mn, while domestic institutional investors (DIIs) bought equities worth Rs 72,136 mn.

Things to watch out for next week

• This week’s market action will be dominated by the US Federal Reserve’s meeting on December 15th, data on the novel covid variant omicron, and November inflation data.
• All eyes will be on the Federal Open Market Committee meeting. This committee is expected to consider stopping the bond-buying programme and raising interest rates, according to consensus. The interest rate decisions of the European Central Bank, the Bank of England, the Swiss National Bank, and the Bank of Japan will also be widely observed.

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