Daily Market Wrap - Oct 1, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty fell on October 01 for the fourth consecutive session in the backdrop of weak global cues. Nifty opened gap down and then remained in a broad 100 points range through the day. It mildly recovered towards the end of the day. At close, Nifty was down 0.49% or 86 points at 17532.

On a day when the volumes on the NSE were lower than the recent average, Metals and Consumer Durables indices rose the most while Realty, Telecom and IT indices fell the most. BSE Midcap closed almost unchanged while BSE Smallcap index ended half a percent higher.

The IHS Markit India Manufacturing Purchasing Managers' Index stood at 53.7 in September against 52.3 in August. GST revenue for August, collected in September, stood at Rs 1,17,010 crore, the highest in five months. That's 4.4% higher than the preceding month and 23% above the year-ago period.

Asian equities were sharply lower as risk sentiment soured amid growing worries that inflation may persist even after global growth has peaked. European equities started the October month lower, as concerns about economic stagflation and US monetary policy combined with surging energy prices and risks of a slowdown in China's industrial and property sectors could prolong a downturn in global stock markets.

Nifty fell over the week by 1.8%, after five weeks of gains. On a weekly basis, PSU Banks, Metals, Pharma and Auto indices rose the most, while IT, FMCG and Bank indices fell the most. On daily charts, the Nifty has formed a doji like pattern after a downgap suggesting a possible halt to the fall temporarily. 17355-17452 could be an important support for the Nifty while 17620 could act as a resistance. 17792 on the upside seems difficult to breach in the near term.

Source : Equity Bulls

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