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Published on 9/09/2019 5:14:27 PM | Source: Motilal Oswal Financial Services Ltd

Equity markets continued its positive streak for the fourth consecutive trading session today - Mr. Siddhartha Khemka

Below is the Views On Market by Mr. Siddhartha Khemka, Head - retail research, MOFSL

Equity markets continued its positive streak for the fourth consecutive trading session today. Nifty recovered over 1% from the intra-day low to close at 11003, with gains of 0.5% (57 points). Nifty has now gained 205 points (1.9%) in the last four trading sessions. Buying interest was seen in broader market with NSE Mid cap and Small Cap index outperforming with gains of 1.2% and 0.6% respectively. Global markets witnessed some recovery after Bank of China cut its CRR by 50bps to lowest level since 2007 and reduced trade tension. Further, expectations of a rate cut by both ECB and US Feb during the week bolstered sentiments.  On the domestic front, expectation of further stimulus from the government, and good monsoon supported market.    

While the Government has been making a slew of announcements to drive growth, it has not really pulled sentiment yet in our view, even though it augurs well from liquidity viewpoint. Further, Continuous FII selling has been a major concern for the market. The market is likely to remain in a tight range due to lack of domestic triggers as well as mixed global cues. The focus for the next few days would shift from geopolitics to global central banks. The ECB meeting is scheduled on September 12, while the US Fed would meet on September 17-18.    

Technically, Nifty formed a Bullish Candle on daily scale as sustained buying interest was seen for most part of the session. It is forming higher highs- higher lows from past three trading sessions and supports are gradually shifting higher. Now it has to continue to hold above 10950 zones to extend its bounce towards 11,111 then 11,141 mark while on the downside support are seen at 10,900- 10,850 levels.

 

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