Below is the Views On Daily Market Commentary by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd
“Indian equity markets opened gap down but pulled back in the second half to close in marginal red, snapping its six day winning streak. Nifty closed 14 points lower (-0.1%) at 11,308, while Sensex ended 37 points (-0.1%) lower at 38,370. However, the broader market ended on positive note with Nifty Midcap 100/ Nifty Smallcap 100 up +0.1%/0.4%. Sectorally it was a mixed bag with Auto, PSU Banks and Media being the biggest gainers, all up more than 2%. On the other hand, Pharma (-1.6%) continued to witness profit booking, followed by FMCG, Metals, Private Banks, Financials and Realty, all down in the range of 0.4%-0.7%. India VIX further cooled down 2.2% to 20.9 levels.
Global cues were weak as doubts grew about whether US lawmakers would reach an agreement on the coronavirus fiscal package to support its struggling economy. On the domestic front, muted macroeconomic data and persistently rising covid cases, dented market sentiments. The near term momentum may continue in market with in-between leaps and bounces, depending upon global cues. Going ahead, investors would watch out for more economic data points which are due this week along with AGR case hearing on Friday and any announcement of stimulus.
Technically, overall trend is positive to range bound with buy on dips strategy while hurdles are intact at higher levels. Nifty can see an up move towards 11400-11500 and higher while support exists at 11200.”
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