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Published on 2/09/2020 7:29:45 PM | Source: Motilal Oswal Financial Services Ltd

Daily Market Commentary 2nd September 2020 by Mr. Siddhartha Khemka, Motilal Oswal

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“Indian equity markets again managed to end in green despite a highly volatile session. Nifty50 ended the day 65 points higher (+0.6%) at 11535, while Sensex closed 185 points higher (+0.5%) at 39,086. The broader market outperformed the benchmarks with both Nifty Midcap 100 /Nifty Smallcap 100 up +1.5% each. India VIX cooled down 4.0% to 20.9 levels. All the sectors ended in green expect PSU Banks which was down 0.4%. Media was the biggest gainer, up 3.4%, while Auto, IT, Metal, Energy and Infra gained more than 1%.

The global sentiments were positive on the back of strong factory output data across major economies. Even India's factory activity grew for the first time in five months with indicators such as power and fuel demand, railway freight and mobility indices also showing improvement. Thus positive economic data boosted market sentiments though the court hearing on interest rate waiving and border tensions with China led to volatility in the market.

Going ahead, the market may look forward for more positive signs of economic recovery and would track the development around US stimulus announcement. Investors will also keep a close watch on India-China border tensions and global markets for cues. Technically, Nifty has formed a small Bullish candle on daily scale. Now it has to hold above 11550 which could again give an upper hand to bulls to drive the move towards 11750-11800 zones, while the support stands near 11400-11300. “

 

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