Daily Markets Wrap - Aug 3, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian benchmark indices crossed the all time highs and closed almost at the intra day high on Aug 03 helped by encouraging macro data. Nifty opened gap up and kept rising through the day and ultimately closed 1.55% or 245.6 points at 16130.8. In the process the Indian markets outperformed their Asian peers who were mixed in a small band.

A surge into record highs was accompanied by volumes that were nominally higher than recent averages. Among sectors Capital goods, Banks, Auto and Telecom were the main gainers.

Asian stocks were mostly negative on Tuesday as the Delta coronavirus variant spread in key regions and Chinese officials took aim at video game producers, once more rattling investor confidence in the mainland's markets. However in Europe, strong earnings updates from oil major BP, banks and others drove European stocks to record highs.

Nifty brushed past through 16000 levels easily and closed higher. However volumes and AD ratio (equal on such a day) do not give confirmatory signals. However momentum is in favour. Hope that India will be a beneficiary of the recent troubles faced by China is keeping sentiments upbeat. While valuations seem high, there is no point in pre-empting a top, but rather wait for signs of medium term change in trend.

Source : Equity Bulls

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