Daily Market Wrap - Aug 30, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty closed at another record high on Aug 30 boosted by encouraging global cues. Nifty opened gap up and rose in the early part of the day. After a brief sideways move, it resumed its upward march and ended almost at the intra day high. At close, Nifty was up 1.35% or 226 points to 16931. India was the second best performing market in Asia after Jakarta.

On a day when the volumes were higher than the average of last three days volumes, IT was the only sector that ended marginally in the negative due to the appreciating Rupee. On the other hand Telecom and Metals were the large gainers among sectors. The broader indices outperformed their larger peers with both the S&P BSE MidCap and the S&P BSE SmallCap gaining over 1.5%.

Asian shares perked up after U.S. Federal Reserve Chairman Jerome Powell struck a dovish tone at the central bank's long-awaited symposium. European stocks held firm on Monday near record highs scaled earlier this month, as hopes that continued central bank support would sustain an economic recovery offset woes over rising Delta COVID-19 variant cases.

Nifty closed once again at the all time high. It is now near the 17000 psychological mark. Sharply positive advance decline ratio has improved sentiments, though participants are aware of the high valuation and possibility of a correction that can set in soon. 17,000 is the next logical target for the Nifty while 16731 is the support for the near term.

Source : Equity Bulls

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