Daily Market Wrap - Aug 25, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty ended flat after making a new all time high before noon on Aug 25. Nifty opened marginally higher, and rose to make an intra day high at ~1130 Hrs. Later profit taking pulled down the indices to the last close levels. At close, Nifty was up 0.06% or 10 points to 16635.

On a day when volumes on the NSE were sharply lower than recent averages, Power , Oil & Gas and IT indices were the main gainers while Consumer Durables and Telecom indices were the main losers. The broader indices outperformed their larger peers with both the S&P BSE MidCap and the S&P BSE SmallCap adding 0.6%.

Asian shares held onto their recent gains on Wednesday after last week's pummelling, as global equities rebounded, though the focus for most asset classes was the U.S. Federal Reserve's annual symposium on Friday. European markets were muted on Wednesday, tracking global sentiment as investors await a key meeting of central bankers.

Nifty lost the intra day gains on Aug 25 and closed almost flat after making a new all time high. The high low of Aug 25 become important from a near term perspective. Advance decline ratio ended above 1:1 raising hopes of broader market recovery. Lower than average volumes reflects hesitation on the part of participants to enlarge their commitment on either side. A breakout of the 16712-16618 band on the Nifty will determine the near term trend of Nifty.

Source : Equity Bulls

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