Daily Markets - May 28, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian benchmark equity indices ended higher on May 28 with Nifty starting June F&O series on strong note. In the process it formed an all time high and all time closing high. Nifty opened higher with an upgap and went zigzag through the day before closing below the intra day high. At close, the Nifty was up 97.80 points or 0.64% at 15435.70.

Volumes on the NSE were a little below recent averages. Among sectors, Oil & Gas rose the most with Reliance contributing the most, while Power & Healthcare fell the most. BSE Midcap and Smallcap indices ended marginally lower.

Asian and European markets mostly rose Friday to end a broadly upbeat week. Asian stock markets rose on Friday, powered by encouraging signs that the U.S. economic recovery from the pandemic is gaining momentum. Rising Eurozone economic sentiment and the prospect of further stimulus in the US have boosted the mood in the markets on Friday, helping European stocks inch towards record highs.

A rally in Asia put global equities on track for a seventh day of gains on Friday (and fourth straight month of gains) as investors bet the U.S. will lead the world out of the COVID-19 pandemic, with the focus turning to a multi-trillion dollar spending boost by the Biden administration.

Nifty closed the week 1.72% higher for the second consecutive week. The upmove in this week has been gradual and the advance decline ratio turned negative on May 28 after 5 days. This suggests some much needed profit taking in the broader market has occurred. Nifty after closing at the all time high could consolidate the recent gains before inching up higher. US markets are shut on Monday and hence Indian markets will not have their performance to track over Monday and Tuesday. Nifty could over the next few days rise towards 15600 while 15300-15327 band could offer support.

Source : Equity Bulls

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