Below is the daily market commentary by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.
Indian equity markets opened positive but failed to sustain at higher levels and finally closed flat to negative. Both Nifty and Sensex ended 0.1% lower to close at 10302/ 34,916. The broader market also ended in marginal red with Nifty Midcap 100/ Smallcap 100 down 0.2%/0.6%. Sectorally it was a mixed bag with PSU Banks (-1.8%), Pharma (-1.5%), energy (-1.3%) and Media (-1.7%) largely dragging the market down. On the other hand, Auto (+1.1%) and FMCG (+0.3%), capped the losses. As per media reports, Pharma companies are seeking more time from foreign clients to meet export orders and have written to FM and PM on port delays.
Global sentiments were somewhat positive on the back of better than expected China’s factory data, strong US housing data and hopes of more US stimulus. However, domestic investors were cautious ahead of the PM speech post market hours. PM in his speech announced expansion of Garib kalyan jojana for 80cr people till November which will be worth Rs1.5lakh cr. Going ahead, we expect market to consolidate at the current levels, as the market oscillates between greed and fear. On one side there is hope of gradual economic recovery along with strong liquidity inflows while on the other side, there is fear of sharp rise in covid cases and chances of second round of lockdown. We would advise investors to stay cautious and look for buying opportunities on declines.
Technically, Nifty has been moving between 10200-10400 zones from last four trading sessions where dips are being bought but follow up is missing. While immediate support is seen at 10200 - 10180 zones, hold above 10330 zones could lead upmove towards 10400-10550 zones.