Daily Market Wrap - Oct 19, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
2021-10-19 22:21:18 (Time Zone: IST)
Nifty snapped a 7 day winning streak, as expected, on Oct 19. Nifty opened up but quickly ran into selling pressure making a morning low at 1010 Hrs. A gradual rise followed with Nifty making a lower intra day high post noon. Post 1400 Hrs, selling pressure accelerated and Nifty closed 0.32% or 58 points lower at 18418.7.
On a day when the volumes on the NSE were even higher than the previous day (and in excess of Rs.1 lakh cr), all major sectoral indices ended in the red other than IT. S&P BSE MidCap index and the S&P BSE SmallCap declined 1.8-2%.
Moody's Investor Services on October 19 revised the Indian banking system's outlook to stable from negative. Moody's sees the deterioration of asset quality has moderated and the improvement in the operating environment will support the asset quality of banks.
A BoFA monthly fund manager survey noted that cash levels among investors rose to a 12-month high signaling growing caution.
Asian shares bounced on Tuesday, led by technology names across the region and as Chinese markets clawed back ground lost after disappointing economic data. European stock markets started the day fairly muted on Tuesday, following a day of losses the session before. World stocks climbed to a one-month high on Tuesday as a rally in technology shares and prospects of solid corporate earnings helped counter concerns about elevated inflationary pressures.
Nifty formed an engulfing bear pattern on daily charts, suggesting some more weakness in the coming days. The next support for the Nifty could come in at 18351, while a sustainable support could come in at 17944. On rises 18477-18500 could offer resistance.