Daily Markets - Jan 4, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian benchmark equity indices ended at record closing level rising for the ninth consecutive session. The Nifty recovered sharply after falling in the morning and making a low @1105 am. At close, the Nifty was up 114.40 points or 0.82% at 14,132.90.

Volumes on the NSE were higher than recent average and advance decline ratio was also very positive. Among sectors, Metals, IT, Auto, Pharma, PSU Bank rose the most, while Bank Nifty ended marginally in the negative.

World stock markets hit record highs on Monday, the first trading day of the new year, as investors hoped the rollout of vaccines would ultimately lift a global economy ruined by the COVID-19 pandemic. A possible tightening in virus rules for Tokyo pulled Japanese stocks off 30-year highs.

A gauge of activity across India's manufacturing sector remained steady even as employment fell for nine straight months. The IHS Markit India Manufacturing Purchasing Managers' Index stood at 56.4 in December compared with 56.3 in November. Chinese factory activity continued to accelerate in December, though the PMI missed forecasts at 53.0. Japanese manufacturing stabilised for the first time in two years in December, while Taiwan picked up.

Nifty has closed at another record high with breadth of the markets improving even further. The post holiday upbeat mood should sustain for another 1-2 sessions. 14200 on the Nifty could be the near term target, while a breach of 13950 could raise some concerns.

Source : Equity Bulls

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