Daily Market Wrap - Aug 9, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty after opening mildly higher on Aug 09, soon gave up morning gains. It formed an intra day low at 1345 Hrs post which a decent recovery ensued. At close the Nifty was up 0.12% or 20 points at 16258.

Volumes on the NSE were the lowest since July 14. This denotes disinterest on the part of traders in a market where the breadth continues to be weak. Banks and IT among the sectors gained the most while Oil & Gas, Metals, Capital goods and Telecom sectors fell the most.

Inflows into Indian equity funds climbed to at least a two-year high in July at Rs.22584 cr.

Asian markets were largely mixed. Global shares treaded water on Monday as sharp falls in gold and oil prices briefly spooked sentiment, while the dollar reached four-month highs on the euro after an upbeat U.S. jobs report lifted bond yields.

Goldman Sachs cut the China growth forecasts cutting the third-quarter growth outlook to 2.3% from 5.8%, though lifted its fourth-quarter outlook to 8.5% from 5.8% previously. That leaves its full-year 2021 projection at 8.3% from 8.6% previously.

Stock specific moves are visible as the Q1 results announcement continues. BSE MidCap shed over 1% while the BSE SmallCap declined nearly 0.75%. Advance decline ratio continued to be deeply in the negative. This reflects profit taking across the board by traders/investors. The Nifty has made a lower low and lower high on a near term basis. However as long as 16146 is not breached, a larger correction may not begin.

Source : Equity Bulls

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