Daily Markets - Dec 18, 2020 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian benchmark equity indices opened the gap down, formed an intra day low around 10 am but gradually recovered the whole lost ground to end marginally in the positive on Dec 18. The high-low range for the Nifty was just 100 points. At close, the Nifty was up 19.80 points or 0.14% at 13,760.50.For the week the Nifty gained 1.83%, rising for the seventh consecutive week.

Volumes on the NSE were higher than recent average. Among sectors, IT and Pharma indices were the main gainers while Bank, Bank Nifty, Realty, Energy, Metal and Infra indices ended in the negative.

European markets were mixed on Friday morning as British and European leaders strike pessimistic tones about the prospect of agreeing to a post-Brexit trade deal. Asian shares slipped on Friday after Reuters reported that the United States is set to add dozens of Chinese companies, including the country's top chipmaker SMIC, to a trade blacklist later in the day. Bank of Japan's announced a six-month extension of its special program aimed at easing corporate financing pressures amid the coronavirus pandemic.

Nifty ended up for the seventh consecutive week. However, the advance-decline ratio has deteriorated over the past two days. Hence now there seems to be a need for caution. Although some more upside cannot be ruled out, index gains may be limited from hereon.

Source : Equity Bulls

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