Daily Markets - Feb 3, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian equity benchmark indices ended higher for the third straight day on Feb 03 (in its best rally in 10 months) but ran into resistance at higher levels. At close, the NSE Nifty 50 index ended 1% higher at 14,789.

Volumes on the NSE were lower than the previous day but much above the recent averages. Among sectors, Pharma, PSU Bank, Metal, Auto & IT rose the most while Realty index fell.

Asian shares largely rose on Wednesday as governments around the world looked poised to boost spending to help economies recover from the coronavirus and vaccine roll-out programmes accelerated. European equities were on track for a third consecutive daily rise on Wednesday, while Italian assets rallied, as hopes that former European Central Bank chief Mario Draghi can bring political stability to Rome added to the positive mood.

A gauge of India's services sector remained steady in January, helped by new businesses. The India Services Business Activity Index, compiled by IHS Markit, stood at 52.8 in January 2021 compared with 52.3 in December.

The Composite PMI Output Index rose to 55.8 in January from 54.9 in December.

Nifty managed to register a new all time high on Feb 03, though it retreated from the highs towards the end. This raises the possibility of a bullish technical count, especially if it does not correct sharply on the succeeding day. The band for Nifty in the near term is 14868 - 14653.

Source : Equity Bulls

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