Daily Markets - May 21, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian benchmark equity indices posted a strong rise on May 21 led by the bank stocks. The Nifty opened higher and kept rising gradually through the day. At close, the Nifty was up 269.30 points or 1.81% at 15,175.30.

Volumes on the NSE were in line with recent averages. Among sectors Banks were the main gainers followed by Telecom, Power and Realty. Midcap and smallcap indices rose but less than the Nifty.

World stocks steadied on Friday after a volatile week, taking their lead from a stronger Wall Street as U.S. data moderated inflation fears, while the dollar approached three-month lows on reduced bets of early Federal Reserve rate hikes.

Asian stock markets are mixed on Friday, following the broadly positive cues overnight from Wall Street, with bargain hunting providing a boost. Japan fell further into deflation as overall consumer prices were down 0.4 percent on year after slipping 0.2 percent in March.

European stocks struggled for traction on Friday, as investors weighed up fresh data from the eurozone, showing a sharp rise in business activity, but a slowdown on the manufacturing side. U.K. reported a 9.2% surge in retail sales for April, a gain that doubled forecasts. U.K. economic activity posted its strongest growth on record in May, according to flash PMI (purchasing managers' index) readings. The IHS Markit composite PMI hit 62.0, its highest since the survey was launched in 1998. The May flash IHS Markit purchasing managers composite output index for the Eurozone region climbed to a 39-month high at 56.9, with the services index at a 35-month high. But the manufacturing PMI slipped to a two-month low at 62.8.

Hopes of a fresh stimulus and the transfer of surplus of Rs.99122 cr by the Central Bank to the GOI, boosted sentiments on the street. Also encouraging PMI data from across the globe and falling Covid cases locally helped lift trader spirits. Nifty closed the week higher by 3.4%, its best weekly gain since February. Now the Nifty is on the way to reach/breach the earlier high. 14928-14984 is the new support band for the Nifty while 15336-15432 is the resistance.

Source : Equity Bulls

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