Daily Market Wrap - Aug 17, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty opened flat on Aug 17 and after a brief rally started to fall. After making an intra day low at 1300 Hrs, it recovered, A late surge post 1500 Hrs too it further higher into positive territory. Recovery in the European markets from the early morning lows lows helped this surge in Nifty. Finally it closed 0.31% or 51 points higher at 16615, another record high.

On a day when volumes were in line with recent averages, IT, FMCG and Healthcare stocks rose the most while Metals, Realty and Telecom stocks fell the most.

Global stocks dropped for a second day amid concern more economic shutdowns are becoming necessary to contain a fast-spreading pandemic. Turmoil in Afghanistan and unease about China's economic outlook after weak July activity added to concerns Chinese factory output, consumer spending and investment grew slower in July than expected.

Advance decline ratio had improved in the morning of Aug 17 compared to the previous day, but late selling in the broader markets took it down again in the negative in line with the recent numbers. Nifty recovered smartly on Aug 17 from the intra day lows, but the broader market is yet to bounce up. Sector rotation is being seen with IT and FMCG rising while Metals and Telecom undergoing correction. Nifty could continue to rise gradually but the broader markets could take time to complete their correction.

Source : Equity Bulls

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