Daily Market Wrap - Aug 27, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty reversed early weakness on Aug 27 to end at record highs. Nifty opened flat on August 27, but sold off in the first few minutes of trade. After making an intra day low at 0930 Hrs, it began to rise gradually. At close, the Nifty was up 0.41% or 68 points to 16705.

On a day of low volumes (though in line with previous two sessions), Capital Goods, Power, Metals and Healthcare sectors gained the most. Broader markets outperformed as the BSE Midcap index closed with a gain of 1.04 percent while the smallcap index rose 0.93 percent.

Asian shares were set for their best week since February on Friday as Chinese markets cheered a burst of central bank liquidity. However some Asian markets ended in the negative. European stocks were flat on Friday ahead of U.S. Federal Reserve chair Jerome Powell's speech at Jackson Hole symposium that could offer hints on the timeline for slowing of its bond purchases program.

Nifty closed the day and week almost at the day/week's high. On a weekly basis, it gained 1.55% with Metals, IT, Pharma and Banks leading the gains. Nifty also closed at the highest ever on daily and weekly basis. Even among the largecaps, advances were seen in many bluechips which is heartening. Advance decline ratio has improved over the past two days, bringing some relief to participants. If Nifty opens above 15722 and remains high for the first hour of trade on Monday we could see further improvement in the Nifty as well as the broader markets. 16543 on the downside could be a crucial support.

Source : Equity Bulls

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