Below is the View On Daily Market Commentary by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.
“Indian equity markets snapped six day gaining streak, ending in marginal red. Both benchmark indices had gained 11.5% each during their six-day rally. Nifty50 fell 32 points (-0.3%) but managed to close above 10,000 mark for second straight day. Sensex went down 129 points (-0.4%) to close at 33,981 level. Broader markets were largely flat with Nifty Midcap 100 down 0.1% while Nifty Smallcap 100 closed in marginal green. Private Banks (-3.1%) were the primary laggards while IT, Media, and Pharma gained in the range of 2%-4%, providing support to the market. India VIX remained flat at around 30 levels.
Indian equities took a breather today in line with global markets which are also trading mixed. Further, erroneous price feeds for Bank Nifty contracts disrupted trading activity. Global cues are mixed as expectations of further government stimulus keeps sentiments high but worries over worsening US-China relation continues to linger too. Investors are also awaiting ECB policy outcome where expectations are running high for more aid. Given the sharp rally witnessed over last few days, we may see the Indian markets consolidating or taking a breather for few more 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, immediate hurdle for Nifty is placed at 10200-10300 zones while support exists at 9950 then 9890 levels. Traders are now suggested to keep the position light with trail Stop Loss as a drift below 9890 may pause in the ongoing positive momentum.”
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