Daily Market Wrap - Aug 18, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty erased all the morning gains after reaching another new high and ended in the negative on Aug 18. In the process it broke a 4 day winning streak. At close the Nifty was down 45.8 points or 0.28% at 16568.8. Indian markets were the worst performers in the Asian region even as other markets ended largely in the positive.

On a day when volumes in the market fell compared to the recent average, Banks, Metals and Realty stocks fell the most.

Asian stocks edged up from a three-week low on Wednesday, but gains were capped by ongoing fears about the Delta variant of the coronavirus, which also caused New Zealand's central bank to delay a previously expected rate hike. European markets gave up early gains as investors weighed the gradual opening of economies worldwide against rising cases of the COVID-19 Delta variant. They also awaited the release of US Fed minutes.

Nifty has formed a bearish "Dark cloud cover" on daily charts. Even though it made a new high in the morning, the fact that contrary to the regional markets it failed to sustain gains and ended in the negative raises some concerns. Broader market continues to show negative advance decline ratio for the fourth consecutive session. Nifty may find it difficult to breach today's high of 16702 for the next 1-2 sessions.

Source : Equity Bulls

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