Published on 26/02/2020 9:58:06 PM | Source: Motilal Oswal Services Ltd

Daily Market Commentary 26 February 2020 by Mr. Siddhartha Khemka

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Below is the Views On Daily Market Commentary by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd

Indian Equity market opened lower on the back of negatives global cues and continued its selling pressure for fourth trading sessions. While it managed to recover some of its intraday losses in first half of the session but it failed to sustain at higher levels and again nosedived in the later half. Nifty slipped over 1% (119 points) to close at 11678 lowest since the Union Budget day on 1st Feb, 2020. Nifty has fallen 448 points (3.7% ) in the last four trading sessions as fears about the financial strain from the spread of coronavirus outside China rattled markets globally. A spike in infections in other parts of Asia as well as the Middle East and Europe has raised fears of a global pandemic impacting the stability of the global economy. The overall market breadth was also negative with both Nifty Midcap 100 and Nifty Smallcap 100 down 1% and 0.6% respectively. Auto, Metal, Banking and Oil & Gas stocks were major losers today. The India VIX increased another 8.3% to 18.3, reflecting the nervousness among investors.

With the outbreak spreading to other countries, investors are increasingly concerned that there could be a much larger impact on the global economy. Investors are also cautious ahead of the Dec quarter GDP data on Friday as well the Feb monthly F&O expiry on Thursday. Markets are expected to remain volatile in the near term given the F&O expiry and spread of coronavirus outside China.

Technically, Nifty filled the previous gap area of 11750 - 11783 (gap of 4th Feb) and formed a Bearish candle on daily chart. At current juncture, Nifty is hovering around its key cluster and 200 SMA on daily scale. However, till the time Nifty holds below its immediate resistance of 11800 mark, bears will have upper hand on the market and we may see further correction towards 11615- 11500 levels.


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