Below is the View On Daily Market Commentary by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd
“Indian equity markets continued its positive momentum on the back of positive global cues. Nifty surged 122 points (+1.2%) to end at 10552 while Sensex ended 429 points higher (+1.2%) to close at 35,844. The broader market also gained with Nifty Midcap 100/ Smallcap 100 up 1.1%/0.9%. All the sectors ended in green except Banking and Realty which ended in marginal red. Auto (+2.8%) and IT (2.7%) were the biggest gainers which led to the market rally. India VIX cooled down 5.7% to 26.5 levels.
Global sentiments continue to be bouyant on the back of more positive economic data and encouraging coronavirus vaccine trials. COVID-19 vaccine from Pfizer and Germany’s BioNTech was found to be well tolerated in early-stage human trials. On the domestic side, better than expected auto sales numbers kept the spirits high. Nifty has given a consolidation breakout of last eight trading sessions and has managed to close near its recent swing high. On an intraday basis, nifty touched 10,598, its highest level in last 64 sessions (9th March 2020). This indicates that bulls are gaining strength and supports are gradually shifting higher. Technically, Nifty may continue to witness an upmove towards 10650-10800 with support placed at 10330-10250 levels.l
While there are concerns over rising coronavirus cases and chances of second round of lockdown, market seems to be factoring in positive macro-economic data, onset of timely monsoon and initial success in vaccine development. Investors would also keenly watch out for the US employment data, which will come out later today. Though the near term momentum may continue, traders should look at booking profits at regular intervals.”
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