Daily Market Wrap - Aug 6, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian benchmark indices fell on Aug 06 breaking a four day winning streak even after the RBI kept the repo rates steady at its MPC meet and maintained an accommodative stance. The Nifty after remaining up in the first hour of trade corrected and remained in a narrow band till the end, partly reflecting the weakness in the Asian markets. At close the Nifty was down 56.4 points or 0.35% to 16238.

On a day when the volumes were lower than recent averages, Power and telecom stocks did well while Energy and Realty stocks fell.

Asian shares lost ground on Friday as the spread of the Delta variant of the coronavirus across the region heightened worries about its economic recovery. European stocks struggled for direction on Friday, with nervousness over the spread of the COVID-19 Delta variant coronavirus and uncertainty about government policy in China keeping underlying sentiment cautious.

After forming a doji on Thursday, the Nifty fell validating the reversal sign of a doji. Over the week, however the Nifty was up 3.0% due to the gains in the early part of the week. However Nifty Midcap 100 rose 0.49% while Nifty Smallcap 100 index fell 0.78% over the week, reflecting the pressure on the broader markets. Over the week, Banks, IT and Auto stocks did well while Media stocks fell. 15962-16146 could be the support band for the Nifty in the coming week while 16337-16349 could act as a resistance.

Source : Equity Bulls

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