Daily Markets - Jan 29, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian benchmark equity indices ended lower for the sixth straight session, matching its longest losing streak since September last year. The nifty opened gap up but slid continuously through the day to close almost at its intra day low. At close the Nifty 50 index fell 1.3% to end at 13,634. Both the benchmarks posted their second consecutive weekly loss, the first time it has done so since May last year. Nifty ended the week 5.1% lower.

Volumes on the NSE were above recent averages. Among sectors, Banks, PSU Bank, Realty were the main gainers, while Auto, IT, Metals, Pharma and FMCG were the main losers. Broad market indices like midcap and smallcap fell less than the Nifty.

European stocks were lower on Friday following weakness in Asian markets and on course for their worst weekly performance since October, as concerns around the slow rollout of COVID-19 vaccines mount and a retail trading frenzy gripped Wall Street this week. This is despite the Stronger-than-expected GDP data in leading European economies. French economy shrank 1.3% in Q4CY20 (vs 4% fall expected), German economy slid 2.9% (vs 3.4% expected) and Spain's economy grew 0.4% (vs 1.5% decline expected).

Investor concerns have also grown over speculation of a shift to tighter monetary policy in China as short-term money rates rose for a fifth day on Friday, with one key rate hitting its highest since 2015. The People's Bank of China (PBOC) injected 100 billion yuan into the financial system on Friday to address the tight liquidity situation.

Nifty closed the week with a sizeable loss, following global nervousness following concerns over valuations and slow speed of vaccination. The impending Budget also pushed some traders to lighten their positions. The high low bar of Friday engulfs that of the previous session, thus throwing water on hopes of turnaround in the indices. In the choppy trade over the next two sessions, Nifty could take support at 13373-13399 band and later at 13128.

Source : Equity Bulls

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