Below is the View On Daily Market Commentary by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd
“After taking a day’s breather, Indian equity markets bounced back in green today, supported by positive global cues. Nifty surged 108 points higher (+1.0%) to end the day at 10,813, while Sensex ended 409 points higher (+1.1%) to close at 36,738. The overall breadth of the market was also positive with Nifty Midcap 100/ Smallcap 100 up 0.4%/1.1%.All the sectors ended in green except FMCG which was down 0.3%. Metals (+2%), Banks (+1.4%) and Financial Services (+1.6%) supported the up-move. India VIX cooled down 5.2% to 24.8 levels.
Indian equity followed the Asian markets as positive economic data from China boosted sentiments. A rise in Chinese iron ore futures and steel prices on the Shanghai Futures Exchange boosted metal stocks in India. Further PM Narendra Modi at India Global Week Summit, said India was already seeing green shoots when it comes to economic recovery. This uplifted the sentiments further and led to more positive momentum in the market in the last hour of the trade. The June quarter earnings season has kick started today with TCS reporting its numbers later in the evening. Market would react to its results in the early trade tomorrow. The near term momentum seems positive, however we would suggest traders should be stock specific and look at booking profits at regular intervals.
Technically, Nifty has been respecting to its rising support trend lines and declines are being bought to form the higher market base. Now, it has to continue to hold above 10700 to extend its move towards 11000-11200 levels while key support exists at 10650-10550 levels.”
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