Daily Market Wrap - Sep 16, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
2021-09-16 18:11:47 (Time Zone: IST)
Nifty closed at record highs for the third consecutive session on Sept 16 aided by Banks & FMCG shares. Nifty opened higher, but soon sold off to make an intra day low at 1000 Hrs. It later recovered through the day to close near the intra day highs. At close the Nifty was up 0.63% or 110 points at 17630.
On a day when volumes on the NSE were higher than recent average, Banks, Telecom, FMCG and Energy shares gained the most, while Metals and IT fell the most. The broader indices underperformed larger peers with the S&P BSE MidCap adding 0.5% and S&P BSE SmallCap closing little changed.
Asian markets were largely weak as the debt crisis at China Evergrande Group and Beijing's latest push to rein in private industries hurt sentiments. Hong Kong's stock market wobbled on Thursday, leaving it on course for its worst week in more than a year, after Beijing's intensifying clampdown on sectors from gambling to education knocked investor sentiment. European stocks were higher following overnight gains in the US markets. However focus remained on key U.S. data due later in the session.
Nifty continued to march upwards on Sept 16; however advance decline ratio has fallen below 1:1 denoting profit taking across the broader markets. Sector and stock rotation among the largecaps is witnessed. 17700 is the next target for the Nifty while 17519 could be the support for the near term.