Daily Market Wrap - Aug 4, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Carrying on from the momentum of the previous day, Nifty opened gap up on Aug 04 and continued to inch up in the morning session. Post 1050 Hrs, it remained in a band and closed 0.79% or 128 points higher at 16259. The indices made another record intraday high and closing high.

Volumes expanded in the upward momentum with Banks being in focus being the main gainer while Realty and telecom were the main losers.

Asian markets rose shrugging off concerns about China regulatory actions and Delta strain spread. European stock markets inched to new all-time highs as optimism about improved corporate earnings eclipsed concerns about the impact of the spread of the Delta variant of coronavirus.

While a gauge of India's services sector indicated some improvement as local lockdowns to contain the deadlier second Covid-19 wave eased, it remained in the contraction zone for the third straight month. The India Services Business Activity Index, compiled by IHS Markit, stood at 45.4 in July 2021 compared with 41.2 in June. The Composite PMI Output Index, however, rose to 49.2 in July from 43.1 in June.

Nifty rose with another gap up reflecting the pent up demand in index heavyweights. Advance decline ratio however has turned very negative despite Nifty being up, suggesting profit taking in the broader markets. With other markets doing well, Nifty could continue to remain steady/up, while the broader market correction could continue for a few sessions.

Source : Equity Bulls

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