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 movement for the fifth straight session, led by Banks and Financial Services. Nifty50 rallied 153 points (+1.6%) to close at 9979 levels while Sensex rallied 522 points to close at 33,826 level (+1.6%). The broader market also participated in the rally with Nifty Midcap 100/Nifty Smallcap 100 up 1.4%/2.4%. All the sectors ended in green except FMCG which was down 0.7%. Private Banks, Financial Services and Media were the biggest gainers recording 3.2% gain each while Real Estate gained 4.9%. India VIX further cooled down 2.4% to 30 levels.
Investors ignored India's ratings cut by Moody's over slower growth and continued to cheer gradual easing of the lockdown and good monsoon prediction. Reassurance by PM in CII’s annual session that India will return to growth boosted sentiments further. Institutional buying over past few sessions also supported the market. Global cues continue to be positive as investors shrug off political unrest in the U.S., worries about a second wave of the coronavirus and US-China tensions.
Nifty is now hovering at its key psychological level of 10000 mark, a move beyond which could lead to continuation of this positive movement over next few days too.
Technically, the resistance for Nifty is placed at 10200-10300 levels, while support is inching higher to 9820 and then 9700 zone.”
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