Daily Markets - Feb 15, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian benchmark equity indices began the new trading week on a strong note on Feb 15 - up for the third consecutive day, driven by outperformance from private financials as well as PSU Banks. The Nifty opened gap up, later remained in a range and closed near the day's high. At close, the NSE Nifty 50 index also gained 1% or 151.4 points to close at 15,314, another record high.

Volumes on the NSE were lower than the recent averages with non financials seeing lower participation. Among sectors, Bank, Realty, Auto were the main gainers while Metal, IT, Pharma were the main losers.

Global shares rose for the 11th consecutive day to hit a fresh peak on optimism about the rollout of COVID-19 vaccines and new fiscal aid from Washington, while tensions in the Middle East drove oil to a 13-month high.

A recent Reuters poll found the euro zone economy was in a double-dip recession and that economists now expect GDP to contract 0.8% in the first quarter, reversing an earlier forecast for growth of 0.6%.

Wholesale inflation in India jumped to the highest since February as prices of manufactured products rose. The Wholesale Price Index-based inflation stood at 2.03% in January 2021 compared with 1.22% in December and 1.14% forecast.

Japan's economy grew an annualised 12.7% in October-December, exceeding a median market forecast for a 9.5% gain. It was slower than the revised 22.7% surge in the previous quarter.

Nifty keeps rising with upgaps reflecting pent up buying partly driven by encouraging Q3 numbers. However selective buying in sectors means that the overall volumes are measured and advance decline ratio also is either flat or negative (like on Feb 15). The next resistance for the Nifty is 15470 while 15243 could provide support.

Source : Equity Bulls

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