Below is the Views On Daily Markets Note by Mr. Deepak Jasani, Head Retail Research, HDFC securities
Carrying on from the previous session, Nifty continued to rally on Wednesday for the 5th consecutive session (the longest streak in almost 6 months). Positive global cues on the back of easing US-China tensions buoyed the trading sentiments. Benchmark indices ended higher on the rangebound day with Nifty able to hold above 11,000 mark. The Nifty index ended 32.65 points or 0.3% higher at 11,035.7.
Broad market indices like the BSE Mid Cap and Small Cap indices gained more, thereby outperforming the Sensex/Nifty. Market breadth was positive on the BSE/NSE. Sectorally, the top gainers were the BSE Realty, Auto and Metal indices. The top losers were the BSE IT, FMCG and Oil and Gas indices.
Global shares were mostly higher Wednesday, cheered by a rise on Wall Street amid some signs of easing tensions between the U.S. and China on trade issues. China announced exemptions for 16 types of U.S. products from additional retaliatory duties, as trade negotiators from the two countries prepare to meet this month to try to de-escalate their protracted tariff row. Diminished risk of a no-deal Brexit prompted buying of out-of-favour value stocks before key central bank meetings.
Technically, with the Nifty rallying further and taking out its recent highs, the bulls do seem to have an upper hand for the short term at least. Further upsides are likely in the near term once the immediate resistance of 11055 is taken out. Crucial supports to watch for resumption of weakness are at 11012-10957.
HDFC Securities Limited (HSL) is a SEBI Registered Research Analyst having registration no. INH000002475
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