Below is the Quote on Daily market commentary by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.
“Indian equity markets bounced back today, after witnessing steep fall yesterday. Nifty rose 82 points higher (+0.7%) to close at 11,762, while Sensex ended 255 points up (+0.6%) at 39,983. The broader market outperformed with Nifty Midcap 100/Nifty Small Cap 100 up +1.1%/+1.4%. India VIX was down 1.9% to 21.7 levels. All the sectors ended in green except IT (-0.1%) and Media (-0.4%) which continued witnessing profit booking. Metals (+4%) was the biggest gainer, followed by Realty (+2.6%)and Private Banks (+2.1%). Apart from this, Pharma and Financials were also up 1.5% each.
Global cues continued to remain weak as fresh COVID concerns, reinstatement of pandemic restrictions by European governments and fading hopes of any US fiscal stimulus announcement before the presidential election weighed on the market sentiments. On the domestic side, stock specific action was seen. Technology shares continued to see profit booking despite HCL Tech declaring strong set of results in line with its peers. Air conditioners companies Amber, Blue Star & Voltas gained between 4 – 9% after the government banned imports of air conditioners with refrigerants with a view to promote domestic manufacturing and cut imports of non-essential items. The leading sector was Metals as the Steel trade data released by China suggests demand remains strong.
Technically, Nifty formed a Bearish candle on weekly scale. Overall setup suggests bounce may be seen but multiple hurdle at higher zones could keep the upside restricted in the market for next few sessions. Going ahead, market is likely to be in a consolidation mode and we expect Nifty to trade in a narrow range of 11650-11850. Investors would keep a close watch on earnings announcements, rising covid cases globally, developments around Covid vaccine and US elections. Investors can use this opportunity to buy on dips in select defensive sectors like IT, Healthcare, FMCG and rural focused names. Traders are advised to keep booking profits intermittently as volatility may continue for sometime.”
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