Introduction:

The market faced pressure for the week ending December 22, marking a break in the seven-week rally amidst concerns about rising Covid-19 cases in India. Despite scaling fresh highs earlier, both the BSE Sensex and Nifty50 declined marginally, ending at 71,106.96 and 21,349.40 respectively.

Market Highlights:

• Vinod Nair of Geojit Financial Services notes the 'buy on dips' strategy and the focus on mid & small caps driven by anticipated rate cuts, US GDP slowdown, and weaker dollar.
• Sector-wise performance witnessed Nifty PSU Bank, Media, Auto, and Metal indices declining, while FMCG and Pharma indices gained.
• FIIs turned net sellers for the week, selling equities worth Rs 6,422.24 crore, contrasting with DIIs buying equities worth Rs 9,093.99 crore.
• BSE Small-cap index hit a record high but closed flat. Various stocks showed notable gains and losses.

Market Analyst Insights:

• Ruchit Jain of 5paisa.com emphasizes the Nifty's support at 20 DEMA and suggests a probable short-term corrective phase within the 20,850-21,500 trading range.
• Om Mehra of SAMCO Securities highlights the Nifty's resilience at the 21,000 mark, indicating strong support, but advises caution due to potential overbought conditions in certain sectors.