Daily Markets - Jan 8, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian benchmark equity indices reversed the two day loss on Jan 08 ending the week on a strong note. At close Nifty settled 210 points, or 1.48 percent, up at 14,347.25. The Nifty opened with an upgap and remained sideways with an upward bias till late afternoon. Post 1430 Hrs another spurt of buying took Nifty up. The Nifty gained 2.35% for the week, gaining for the 10th consecutive week -its longest winning streak since June 2009.

Volumes on the NSE were higher than recent average. Among sectors, Auto, IT, Media and Pharma were the main gainers, while Metals and PSU Banks were the main losers. Midcap and Smallcap indices rose, but less than the Nifty.

Asian shares rose to record highs on Friday, with Japan's Nikkei hitting a three-decade peak as investors looked beyond rising coronavirus cases and political unrest in the United States to focus on hopes for an economic recovery later in the year. Most Asian equities were set to notch their biggest weekly gains in many months on Friday.

European markets traded higher Friday as global investors anticipate that a Democratic-controlled U.S. government will lead to greater fiscal support. A laboratory study indicated that the Pfizer and BioNTech vaccine is effective against the new, highly-transmissible mutations of the virus found in the U.K. and South Africa. Eurozone November unemployment rate came in at 8.3% vs 8.5% expected.

Nifty closed at another record high. The results season begins today with TCS coming out with its Q3FY21 numbers. As more companies come out with their numbers, the focus could shift from index to individual stocks and peer stocks. There is still no reversal signal for the index. Another 2 odd weeks of gains seem plausible though not at the same pace.

Source : Equity Bulls

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