Daily Market Wrap - Oct 25, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty broke a 4 day losing streak and ended marginally in the positive on October 25 helped by Banks. Nifty opened flat and started to fall in the first few minutes of trade. It made an intra day bottom at 1000 Hrs and bounced from there. It made an intra day high at 1205 Hrs and then went sideways with a minor weak bias. At close, Nifty was up 0.06% or 10.5 points at 18125.4.

On a day when the volumes on the NSE were a little higher than the previous day, Bank index is the largest gainer while Realty, Auto, IT, Consumer Durables, Telecom and FMCG have lost the most. BSE Midcap and Smallcap indices are down 1.7-1.8%.

China tightened travel controls in some areas in response to coronavirus infections. World stocks held their ground on Monday after eight consecutive sessions of gains, as traders weighed the prospects of strong corporate earnings in the backdrop of widening inflation risks from multi-year high crude oil prices.

Nifty recovered well from the morning weakness. In the process it made a lower intra day low compared to the previous session but closed higher. It turned up from the low of 17968 - close to the support level of 17948. Selling pressure in some index heavyweights is counterbalanced by buying in some other sectors. However the broader market continues to flounder and the advance decline ratio is deeply in the negative. Nifty has a chance to stabilize and bounce up though a broader market recovery seems a couple of days away.

Source : Equity Bulls

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MarketWrap HDFCSecurities Nifty