Below is the View On Daily Market Commentary by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd
“Indian equity markets opened gap up but gave up some of its gains towards the end, though still ended in green for the third straight day. Nifty closed 56 points higher (+0.5%) at 11,270, while Sensex ended 142 points (+0.4%) higher at 38,182. However, the broader market outperformed the benchmarks with Nifty Midcap 100/Nifty Smallcap 100 up +1.4%/+1.7%. All the sectors ended in green with Pharma being the biggest gainer, up 5.5%, followed by Realty (+2.8%). Rest all the sectors gained 0.4%-1%.
Global cues were positive in the morning trade post strong industrial activity datafrom China. But it turned weak later after China said it would impose sanctions on American officials in retaliation for Hong Kong measures. The mood was also warry with an unclear timeline on the US relief package, with neither Democrats nor Republicans giving a firm date after reaching an impasse last week. On the domestic front, the market cheered the robust Pharma earnings. Further, Defence-oriented stocks reacted positively to the news where an embargo was imposed by the government on the imports of 101 defense items under the Atmanirbhar Bharat program.
With the rising US-China tensions and resurging covid cases, the uncertainties are increasing. The markets are likely to remain volatile, with more stock specific action as the earnings season progresses. Investors would watch out for development over US-China tension while any announcement of US stimulus could bring some cheer.
Technically, Nifty closed positive and has been making higher lows from last five trading sessions which indicates overall bullish stance which indicates that overall bullish structure is maintained. Now, it has to continue to hold above 11200 zones to witness an up move towards recent swing high of 11341 then 11500 while support exists at 11150-11100.”
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