Daily Market Wrap - Aug 24, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian benchmark equity indices closed higher for the second consecutive session on Aug 24. Nifty opened gap up and began to climb higher post 1005Hrs. It ultimately closed near its intra day high. At close Nifty was up 0.78% or 128 points to 16625.

On a day when the volumes on the NSE were marginally below recent average, all cyclical sectors rose. The main gainers among them were, Metals, Oil & Gas, Banks, Capital Goods while IT and FMCG ended marginally in the negative.

A bounce in China's tech sector led Asian stocks higher on Tuesday and markets were also cheered by positive U.S. vaccination news and easing worries about an imminent tapering of stimulus by the Federal Reserve. European stocks were mixed on Tuesday after a full U.S. approval of a COVID-19 vaccine boosted Wall Street to record highs, while latest data showed a stronger-than-expected economic recovery in Germany.

Nifty bounced up well over the past two days and on Aug 24, it filled the downgap formed on Friday on closing basis. Advance decline ratio also improved dramatically to the highest since Aug 12. Nifty is just 76 points away from the all time high formed on Aug 18. More than the Nifty, focus will remain for some time on the broader markets, as to how much does the broader market recover when the Nifty is near all time highs.

Source : Equity Bulls

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