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

Nifty closed down for the third consecutive session on Sept 30 to close the quarter with gains of 12%. Nifty opened higher on Sept 30, ran into resistance multiple times and began to fall post 1230 Hrs. Last day of the month and last day of F&O expiry for the month have coincided and creates some pressure on the markets. At close the Nifty was down 0.53% or 93 points at 17618.

On a day when the volumes on the NSE were higher than recent average (but lower than F&O expiry day), Realty and Consumer Durables indices rose the most while Metals, Telecom, Auto, Banks and IT fell the most. Broad market indices like smallcap and midcap indices ended in the green.

China's factory activity unexpectedly shrank in September as high raw material prices and power cuts pressured manufacturers in the world's second-largest economy.

U.S. Democrats and Republicans have reached an agreement on a stopgap funding measure to prevent a government shutdown. Post the voting on this on Oct 01, the government would remain open through Dec. 03.

A majority of participants in a Citigroup Inc. survey said a 20% pullback in stocks is more likely than a 20% rally.

Most global markets rose Thursday after the previous day's retreat, though investors continue to worry that surging inflation will lead to interest rate hikes.

Nifty has fallen for three consecutive sessions - the longest streak in almost two months. While the Nifty has not fallen with deep cuts and recoveries have been witnessed post intra day selloffs, the fact that the Nifty closed lower for three straight sessions is a bit unnerving. On weekly charts Nifty fell 1.32% for the week after five weeks of gains. 17576-17608 is the support band for the Nifty in the near term. A breach of this band could take it to 17355, post which a larger fall may ensue. On rises, 17781-17802 could act as a resistance.

Source : Equity Bulls

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