Daily Market Wrap - Oct 18, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty closed higher for the seventh consecutive session on October 18 aided by Metal and IT stocks. This is the longest winning streak from NSE Nifty 50 index since August 31. Nifty opened gap up on Oct 18 after a three day break and held on to opening gains till the end. This was despite softness across the Asian region. At close Nifty was up 0.75% or 138 points at 18476.6.

On a day when the volumes on the NSE crossed Rs.1 lakh cr mark, Power, Metals and IT were the main sectoral gainers while Healthcare and Telecom were the main losers. The broader indices BSE midcap and smallcap added 0.7-1%.

Asian markets were largely down following Inflation worries due to surging energy prices and slowing growth in China. European markets headed lower on Monday morning in London, compounding jitters following GDP data in China that missed expectations.

Nifty rose on very high volumes. Advance decline ratio closed in the positive towards the day end but was lower than the morning levels. Nifty is now overbought on daily charts. Tuesday is the eighth day in this uptrend and eight is also a fibonacci number that could denote a change in trend for the near term. 18600 on the Nifty is anyway a resistance while 18350 is a support.

Source : Equity Bulls

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