Daily Markets - Feb 23, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian benchmark equity indices closed off the highest point of the day on Feb 23 but managed to snap a five-day losing streak. The nifty made an intra day high at 1040 Hrs and then slid and went sideways. At close, the Nifty 50 index ended 32 points higher at 14,707.

Volumes on the NSE were in line with recent averages. Among sectors, Metals, Realty , Auto were the main gainers while Banks were the main losers. The Nifty Midcap index ended 1% higher while the Smallcap index gained a similar quantum to end with gains of 0.9%.

Asian markets mostly rose Tuesday, powered by growing hope that vaccine rollouts will allow the global economy to get back on track, but the optimism was moderated by niggling worries that the recovery will fan inflation and interest rate hikes. Emerging market bond funds faced outflows for the first time in 21 weeks in the week ended Feb. 17, with outflows of $689 million.

European stocks retreated on Tuesday amid a choppy morning of trading, with tech stocks following their global counterparts lower on fears over rising bond yields. In the U.S., attention will be focused on Federal Reserve Chairman Jerome Powell on Tuesday as he delivers his semi-annual testimony on the economy before the Senate Banking Committee. His comments on rates and inflation could determine the market direction for the week.

Nifty halted the 5 day losing streak but the recovery or bounce was feeble. This raises doubts about sustainability of this bounce. However positive advance decline ratio raises hope for the broader markets.

Source : Equity Bulls

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