Daily Markets - April 9, 2021 Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
(Time Zone: Arizona, USA)
Indian benchmark equity indices ended the final trading session of the week on April 09 on a negative note after a three-day gaining streak. Nifty made an intra day high at 1005 hours and gradually fell during the day though in a narrow range. At close the NSE Nifty 50 index, shed 0.26% or 38.9 points to end at 14,834.9. For the week, the Nifty closed 0.2% lower.
Volumes on the NSE were in line with recent averages. Among sectors, Pharma, Media and FMCG rose the most, while Banks and Metals fell the most. The Nifty Midcap index gained 0.2% while the Smallcap index rose 0.5% at the close of trade.
Shares fell Friday in most Asian markets after China reported a stronger than expected rise in producer prices and in fuel prices that could prompt authorities to act to cool inflation. A fresh round of U.S. sanctions, this time against seven Chinese supercomputer makers, has revived concern over trade friction between the two largest economies. European markets are faltering towards the weekend, but held near record levels as investors absorbed the latest comments from Federal Reserve Chairman Jerome Powell. German (down 1.6% in Feb MoM and down 6.4% YoY) and French industrial production both saw surprise drops in February, as lockdowns hit those economies.
India's direct tax collections for 2020-21 came in at Rs 9.45 lakh crore, higher than revised estimates of Rs 9.05 lakh crore, however these were 10 per cent lower than 2019-20.
Nifty has formed a mild bearish engulfing pattern on daily charts after a doji. This suggests hesitation on the part of traders to go all out on long side at these levels. However the broader market continues to perform well and sectoral rotation gives traders enough opportunities to trade. On upmoves, 14984-15050 continues to be a resistance while 14687-14737 on the downside could provide support.