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NSE Intra-day chart (20 August 2021)
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Market Commentary 23 August 2021
Markets to get gap-up opening tracking global peers


Indian equity benchmarks closed in the red for second straight day on Friday dragged by heavy selling across the board. Indices opened a day with a strong gap down on weak global cues. The mood on the street remained cautious with the labour ministry's statement that retail inflation for farm workers and rural labourers rise marginally to 3.92 per cent and 4.09 per cent in July, as compared to the previous month. The numbers in June had stood at 3.83 per cent and 4 per cent, respectively. Traders were also worried, after industry body FIEO said that bilateral trade with Afghanistan has been impacted and Indian exporters are concerned about their payments as banking services and remittances may face restrictions due to the ongoing situation in that country. Sentiments remained fragile in late afternoon session, even as rating agency ICRA's report stated that India's Gross domestic product (GDP) growth is estimated to come at the deceptively high level of 20 percent and the gross value added (GVA) will register a growth of 17 percent for the April-June 2021 quarter (Q1FY22) but is far below the same in the pre-COVID times. Besides, India Ratings and Research (Ind-Ra) has revised upwards its 2021-22 (FY22) GDP growth forecast to 9.4 per cent, considering the surprisingly faster recovery after the second wave of COVID, higher exports and sufficient rainfall. Traders failed to take some support with Union Commerce and Industry Minister Piyush Goyal's statement that exports have reached nearly $15 billion for the first half of August, after posting the highest-ever monthly performance in July at $35 billion. He said It will be a record-breaking year for exports. Exports are engaging with new products, new services, new markets and the world is looking at India as a trusted partner. Finally, the BSE Sensex fell 300.17 points or 0.54% to 55,329.32, while the CNX Nifty was down by 118.35 points or 0.71% to 16,450.50.   


The US markets ended higher on Friday, with notable gains, driven by strength in tech stocks, although concerns over a slowing economic recovery and the possible tapering of stimulus capped upside. With the upward move on the day, stocks did regain ground following the sharp pullback seen during trading on Tuesday and Wednesday. The major averages fell to their lowest levels in almost a month amid concerns about the outlook for monetary policy following the release of the minutes of the latest Federal Reserve meeting. The Fed minutes indicated most officials were in favor of beginning to scale back the central bank's asset purchase program later this year. Uncertainty about the outlook for monetary policy may lead traders to keep a close eye on upcoming economic data ahead of the Fed's next meeting in September. Technology stocks helped to lead the way higher during trading on Friday, as reflected by the notable advance by the tech-heavy Nasdaq. Significant strength was visible among biotechnology stocks, as reflected by the 1.9 percent jump by the NYSE Arca Biotechnology Index. Software stocks also showed a substantial move to the upside, driving the Dow Jones U.S. Software Index up by 1.9 percent to a record closing high. Computer hardware, housing and brokerage stocks also saw notable strength on the day, moving higher along with most of the other major sectors. Meanwhile, traders are looking ahead to the reports on new and existing home sales, durable goods orders and personal income and spending.


Extending their losing streak for seventh straight session, crude oil futures settled lower on Friday amid worries about outlook for energy demand due to spikes in coronavirus cases and possible fresh restrictions on movements in several countries. A stronger dollar amid China's crackdown on the once high-flying technology firms and rising prospects of tighter monetary measures from the Federal Reserve also weighed on crude oil prices. According to a report released by Baker Hughes, the total count of U.S. active drilling rigs increased by three to 503 this week. Drilling rigs targeting crude oil rose by 8 to 405 after rising by 10 in the previous week. Gas rigs fell by 5 to 97 this week. The total count is roughly double the 254 rigs actively drilling a year ago. Crude oil futures for September fell $1.37 or 2.2 percent to settle $62.32 barrel on the New York Mercantile Exchange. October Brent crude dropped $1.37 or 2.07 percent to settle at $65.08 a barrel on London's Intercontinental Exchange.


Indian rupee ended weaker against dollar on Friday due to increased demand for American currency from importers and banks. Also, pressure in domestic equity markets impacted traders' moods. Sentiments were fragile as US Federal Reserve could rein in vast stimulus measures this year, coupled with the rapid spread of the coronavirus Delta variant, signs of faltering Chinese economic growth, and the Taliban's takeover of Afghanistan. Traders were also concerned after industry body FIEO said that bilateral trade with Afghanistan has been impacted and Indian exporters are concerned about their payments as banking services and remittances may face restrictions due to the ongoing situation in that country. On the global front, dollar hit a new 9-1/2-month high against major peers on Friday, buoyed by fears that the Delta coronavirus variant could delay the global economic recovery just as central banks begin to reverse pandemic-era stimulus. Finally, the rupee ended 74.39, weaker by 15 paise from its previous close of 74.24 on Wednesday.


The FIIs as per Friday's data were net buyer in both equity and debt segment. In equity segment, the gross buying was of Rs 9953.54 crore against gross selling of Rs 8850.85 crore, while in the debt segment, the gross purchase was of Rs 436.05 crore with gross sales of Rs 190.71 crore. Besides, in the hybrid segment, the gross buying was of Rs 2.34 crore against gross selling of Rs 32.87 crore.


The US markets ended in green on Friday despite concerns about economic growth amid rising COVID-19 cases. Asian markets are trading higher on Monday as traders sought to take advantage of last week's selloff while weighing risks from the delta virus strain and China's regulatory curbs. Indian equity indices, Sensex and Nifty ended sharply lower on Friday dragged by heavy selling across the board amid weak global cues. Today, the markets are likely to get gap-up opening tracking gains in global peers. Traders will be taking encouragement with a private report that the government said that the country's agri-exports are estimated to grow 15% in FY22, adding that export of products like rice, meat, cereals and dairy items rose 44.3% on-year to $4.81 billion during April-June 2021. Their exports were $3.33 billion in the year ago period. Some support will come as investments in the Indian capital markets through participatory notes (P-notes) rose to Rs 1.02 lakh crore till July-end, making it the highest level in last 40 months. This also marks the fourth consecutive monthly growth. Fall in coronavirus cases also likely to aid domestic markets. India recorded 25,420 new Covid-19 cases and 385 deaths in the past 24 hours, taking its tally to 32,448,969 and the death toll to 434,784. However, traders may be concerned as RBI Governor Shaktikanta Das the resurgence in inflation in May and June above the upper threshold has reignited the debate on the appropriate monetary policy response, according to MPC minutes. There may be some cautiousness as RBI data showed India's foreign exchange reserves decreased by $2.099 billion to stand at $619.365 billion for the week ended August 13 due to a fall in core currency assets and gold. Meanwhile, the government said it has set up an eight-member committee to suggest a roadmap for doubling production and quadrupling exports of handlooms in three years. The committee, chaired by Fashion Design Council of India (FDCI) Chairman Sunil Sethi, would submit its final report within 45 days. There will be some buzz in the metal stocks as Icra in its report said that with demand uptick stemming from the government's thrust on infrastructure, mainly in the rural markets, capacity utilisation for medium and small long steel product manufacturers is expected to improve in the coming quarters. There will be some reaction in oil & gas industry stocks as Petrol and diesel prices were cut by 20 paise per litre each on Sunday - the first reduction in petrol rate in over a month, and the fourth in case of diesel in less than a week. Besides, Nuvoco Vistas will make its Dalal Street debut today. The Rs 5,000 crore IPO of the company subscribed 1.71 times earlier this month in the price band of Rs 560-570 per share.


Support and Resistance: NSE (Nifty) and BSE (Sensex)



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NSE Nifty




BSE Sensex





Nifty Top volumes





Previous close (Rs)

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Tata Motors





Tata Steel





State Bank of India





Oil & Natural Gas Corporation





Hindalco Industries






  • TCS is expanding its strategic partnership with Google Cloud with the launch of Google Garages at its TCS Pace Port coinnovation and advanced research centers in Amsterdam, New York and Tokyo. 
  • ONGC has invited bids from private companies for handing over operations of 43 small and marginal oil and gas fields to raise production. 
  • JSW Steel has set a target of achieving CO2 emissions of 1.95 tCO2e per tonne of steel by Fiscal 2030, which is a 23% reduction from FY20 and 42% reduction from the base year of 2005. 
  • Tata Steel is planning to pay total of Rs 270.28 crore as annual bonus for the accounting year 2020-2021 to its eligible employees of all applicable division /units of the company.
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