Daily Markets - June 18, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian benchmark equity indices erased all the intraday losses and ended near the day's high level on June 18. The Nifty opened higher, but sold off from the beginning. It made an intraday low at 1100Hrs, post which a gradual recovery ensued. At close, the Nifty was down 8.00 points or 0.05% at 15683.40.

Volumes on the NSE were much higher than recent averages due to volatile trade. Among sectors, Telecom, Consumer Durables and FMCG indices gained the most while Power, Oil & Gas and Metals lost the most.

Asian shares extended losses for the week and the greenback hovered near two-month highs on Friday as investors digested comments from the U.S. Federal Reserve projecting rate hikes in 2023. European stocks were relatively flat on Friday morning, as global markets monitor falling commodity prices while continuing to digest a hawkish tone from the U.S. Federal Reserve. The German Producer Price Index (PPI) rose 1.5% month on month in May, vastly outstripping the 0.7% consensus forecast.

Nifty halted a four-week winning streak as it ended the week 0.73% lower. Panic selling has been absorbed well so far in the markets and local investors have taken these sell-offs as an opportunity to add to their positions. Absence of a sharp selloff in global markets is helping keep sentiments steady here. Follow through buying however may be selective and index gains from hereon may be relatively slow. On the upside the Nifty could face resistance at 15750 while 15430 could provide support on downmoves.

Source : Equity Bulls

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