Daily Market Wrap - Aug 31, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty gained for the third consecutive day on Aug 31 and closed above 17000 for the first time ever. Nifty opened mildly higher and made an intra day low within first 30 minutes of trade. It later kept inching up gradually through the day to end almost at the intra day high. Late recovery in Asian markets also helped Nifty to rise further. At close, the Nifty was 201 points or 1.19% higher at 17132.

On a day of large month-end volumes on the NSE, none of the sectors ended in the negative while Telecom, Consumer Durables, IT and Metals were the main gainers. Broad market indices underperformed with a gain of ~0.5% each.

Stock markets set new record highs on Tuesday as investors ended August in a buoyant mood, confident of an ongoing economic recovery and that the Federal Reserve's eventual paring back of its stimulus would not knock asset prices anytime soon. European stocks edged higher on Tuesday, on track for their seventh straight month of gains.

Nifty sliced through 17000 without much effort. A flat advance decline ratio on such a day denotes traders flocking to largecaps and taking profits out of mid and smallcaps. Nifty could now face resistance at 17250 while 16951 could provide support.

Source : Equity Bulls

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