Please find below the daily market commentary by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.:
“Indian equity markets again resumed its upward momentum after a one day blip. Nifty opened flattish but gradually extended its gains, finally ending 83 points higher (+0.7%) to close at 11,215. Sensex rose 269 points higher (+0.7%) to close at 38,140. Even the broader market participated in the rally with Nifty Midcap100/ Nifty Smallcap 100 both up 1% each. All the sectors ended in green except IT which was marginally down 0.2%. Energy, Pharma, Real Estate, Auto and PSU banks were the major gainers up 1.2%-1.5%. RIL’s market capitalization crossed the Rs13.5 trillion mark after the stock hits its new high on reports of a potential investment by Amazon.
Global markets traded mixed. On the positive side, there were better-than-expected corporate earnings and potential vaccine developments which were offset by worries over flaring tensions between the United States and China. On the domestic front, the sentiments were uplifted after India's commerce minister, Piyush Goyal, said that the US and India were nearing a trade deal after two years of negotiations. The sentiments were further boosted by the news of India working on offering production-linked incentives for up to five sectors to boost domestic manufacturing. Thus the near term momentum looks positive as every dip is getting bought into. Technically too, Nifty formed a Bullish Candle on daily scale and managed to close above its crucial hurdle of 11200. It can now extend its momentum towards 11500 while the support is placed at 11000 levels. We would advise investors to continue with their defensive portfolio approach given the high valuations and maintain stock specific action. Traders on the other hand are advised to stay cautious and keep booking profit at regular intervals.”