Daily Markets Wrap - Sep 5, 2022 - HDFC Securities

Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty closed higher on Sept 05. Nifty opened higher and inched up through the day. At close, Nifty was up 0.72% or 126.4 points at 17665.8.

Among sectors, Metals, Capital Goods, Banks and Telecom indices rose the most while Oil & Gas index led the losers. While the advance decline ratio was positive at 1.78:1, Midcap index underperformed the Nifty but the Smallcap index outperformed.

Asian indices were mostly in the red, paced by losses in Hong Kong, where tech shares slid as traders weighed the risk of curbs on investment from the US and growing concerns over new COVID-19 lockdowns impacted sentiments. European stocks slumped and the euro fell Monday as the region's worsening energy crisis added to risks for a global economy already facing high inflation and a wave of monetary tightening.

Economic activity in the Eurozone contracted further in August, with the S&P Global Composite PMI index falling to 48.9 from 49.9 the previous month. A gauge of India's services sector recovered from a four-month low, led by job creation and new businesses. The India Services Business Activity Index, compiled by IHS Markit, stood at 57.2 in August compared with 55.5 in July. The Composite PMI Output Index stood at 58.2 against 56.6 the month before.

Nifty broke out nicely of the two day range move. Given the subdued sentiments abroad, it may find it difficult to rise sharply from hereon. As US markets are shut today, no cues will be available for Indian markets from there. Nifty could stay in the 17778-17476 band for the near term.

Source : Equity Bulls

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