Daily Market Wrap - July 5, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian benchmark equity indices ended higher for the second consecutive day on July 5. The Nifty opened higher with a gap up, rose to remain in a band through the day and closed near the intra day high. At close, the Nifty was up 112.20 points or 0.71% at 15,834.40.

Volumes on the NSE remained subdued. Among sectors, Realty, Metals and Banks were the main gainers, while Power was the lone loser. BSE midcap and smallcap indices rose 0.3-0.8 percent.

World stocks hugged close to record highs on Monday as worries about the Delta variant of COVID-19 offset positive sentiment from surging euro zone business activity and a welcome U.S. jobs report. Inflation fears cooled down as markets believed that data was not strong enough to alter Fed's current monetary policy stance. Tech shares in Asia were mostly lower, and particularly shares of Chinese tech firms in Hong Kong as regulatory fears resurfaced. European shares were held below record highs on Monday, as the global spread of the Delta variant of the novel coronavirus raised fears of a stunted economic recovery.

A gauge of India's services sector fell to its lowest in 11 months as new business and output declined. The India Services Business Activity Index, compiled by IHS Markit, stood at 41.2 in June compared with 46.4 in May. The Composite PMI Output Index, too, fell to 43.1 in June from 48.1 in May. That's the sharpest rate of reduction since July 2020.

Nifty rose for the second straight day with a gap up and closed near the intra-day high. This along with a positive advance decline ratio means some more upside potential in the near term. 15870-15915 could be the next resistance for the Nifty while 15777 could be a support. Volume expansion, if it happens soon, will help in sustaining the upmove.

Source : Equity Bulls

Keywords