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Below is the Views On Daily Market Commentary by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd
“Equity markets again reversed its direction and fell on account of continued fear with regards to coronavirus and cautiousness ahead of Budget. Nifty ended 0.8% lower to close at 12036. Broader market also witnessed selling pressure with Nifty Midcap 100/Nifty Smallcap 100 down 0.8%/1.6%. All the sectors ended in red with Pharma (-2.1%) being the biggest loser followed by FMCG (-1.6%) and Metals (-1.4%). Market sentiments have dampened over the mounting death toll in China by the Coronavirus. India too reported its first case of the virus in Kerala.
The markets is likely to be highly volatile as investors are nervous ahead of the Union Budget on Saturday where the market is expecting measures from the government to lift economic growth. Further the results season has been mixed so far with disappointments from many heavyweights. HUL, SBI, Indian Hotels, ITC, Tech Mahindra among others would be announcing their results tomorrow which could further add to the volatility. Investors would also be cautious ahead of the Auto monthly sales numbers which would start coming from 1st Feb onwards. In addition to this, as the coronavirus spreads to other countries, fear is mounting which is dampening the global sentiments.
Technically, Nifty formed a negative candle on daily scale and closed a tad below its crucial support of 50 EMA on daily scale. At current juncture, index is hovering around the lower end of a Rising Megaphone pattern on daily chart. Going forward, If it sustains below 12000 levels, then selling pressure may accelerate towards 11930 - 11900 zone. On the flipside, immediate hurdle for Nifty is placed at 12150 zone.”
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