Daily Market Wrap - Oct 4, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty snapped a four day losing streak on Oct 04 and ended higher. Nifty opened gap up, rose to make an intra day high at 955 Hrs and then remained in a 100 point band. At close Nifty was 0.91% or 159 points higher at 17691.

On a day when the volumes on the NSE were higher than normal, Realty, Power, Metals, Capital goods and Healthcare indices gained the most while Consumer Durables index fell the most. S&P BSE MidCap rose 1.5% and S&P BSE SmallCap gained over 1.7%.

Asian markets were mixed on Monday, with Hong Kong's benchmark down more than 2% after troubled property developer China Evergrande's shares were suspended from trading. Markets were closed for holidays in Shanghai and South Korea. European stocks recovered from early losses to trade flat on Monday after progressive Democrats signaled Sunday they are willing to compromise to get U.S. President Joe Biden's sweeping domestic agenda through Congress, However concerns that higher inflation, supply shortages and China's property sector problems would put global economic recovery at risk continued to haunt market participants.

Nifty has formed a bullish morning star pattern though its placement is normally after a deep/prolonged sell-off. Advance decline ratio is also sharply positive. Nifty could continue its uptick and remain in the 17576-17781 band for the near term.

Source : Equity Bulls

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