Below is the View On Daily Market Commentary by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.
“Indian equity markets extended its positive momentum for the sixth straight session, once again led by Banking and Financial Services. Nifty50 opened gap up and continued its momentum with gains of almost 200 points intraday. Despite profit booking towards latter half of the day, index managed to hold on above the 10,000 mark. Nifty50 ended the day with the gains of 82 points (+0.8%) to close at 10,061 levels, while Sensex rallied 284 points to close at 34,110 level (+0.8%). The broader market continued its participation with Nifty Midcap 100/Nifty Smallcap 100 up 0.4%/1.2%. Barring IT (-0.4%) and Metals (-0.2%), all the other sectors ended in green. PSU Banks (+5.1%), Realty (+3.1%), Financial Services (+1.9%) and Private Banks (+1.9%) were among the biggest gainers today. India VIX remained flat at around 30 levels.
Indian equity markets have been on a roll for the past few days as investors ignored near term growth concerns and cheered the gradual easing of the lockdown and good monsoon prediction. Hopes of a potential COVID-19 vaccine and expectation of further stimulus announcement by the government kept the sentiments positive. Global cues too have been positive as investors shrug off political unrest in the U.S., worries about a second wave of the coronavirus and US-China tensions. Nifty has moved up sharply by 11% (+1000 points) in the last 6 trading sessions primarily led by gains in Financials. Bank Nifty has outperformed by gaining 20% over the same period. Hence we may see the Index consolidating or taking a breather for a few days before starting the next leg of rally. Given the positive global and domestic cues, the overall view on the markets continue to remain positive.
Technically, the resistance for Nifty is placed at 10200-10300 levels, while support has moved up higher to 9900 – 9820 zone.”
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