Published on 3/07/2020 7:00:24 PM | Source: Motilal Oswal Financial Services Ltd

Daily Market Commentary 3 July 2020 by Mr. Siddhartha Khemka, Motilal Oswal

Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel 

Download Telegram App before Joining the Channel

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 upward momentum for the third straight day, on the back of positive global cues. Nifty rose 56 points (+0.5%) to end at 10607 while Sensex ended 178 points higher (+0.5%) to close at 36,021. The broader market also gained with Nifty Midcap 100/ Smallcap 100 up 0.7%/0.2%. Sectorally it was a mixed bag, with IT, Auto, Infra, Energy and Realty gaining more than 1%. Banking and Financial Services along with Metals largely limited the market up move. India VIX further cooled down 3.1% to 25.7 levels.

 Global sentiments continue to be bouyant on the back of more positive economic data from the United States and China which bolstered hopes of a global economic rebound. China's services sector in June expanded at the fastest pace in over a decade, and US non-farm payrolls saw a better-than-expected jump. Regulatory approval to Cadila Healthcare's Zydus for human trials of a potential COVID-19 vaccine too boosted domestic sentiment. However, a record spike in domestic coronavirus cases capped gains. Total COVID-19 infections in India jumped by a record 20,903 cases to 625,544, days after the government eased lockdown rules to revive the economy.

 Market is factoring in positive macro-economic data, onset of timely monsoon and optimism over potential Covid vaccine emerging soon. However, concerns over rising coronavirus cases and chances of second round of lockdown along with trade tensions between US-China continue to linger. Thus, despite the near term momentum being positive, traders should look at booking profits at regular intervals.

 Technically, Nifty has to hold above 10500 to extend its move towards 10800 while the support is placed at 10450-10330 levels.”


Above views are of the author and not of the website kindly read disclaimer