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Daily market commentary 28 October 2022 by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Indian markets opened positive despite mixed global cues and resumed its positive momentum for second consecutive day. After the initial strength Nifty did witness some weakness during mid-day however managed to recover smartly in the last hour of trade to close with gains of 50 points (+0.3%) at 17,787. India VIX continued to cool off down 4% and now below 16 levels. Broader market however witnessed profit booking as were down 0.5%-1.0%. Banking stocks too witnessed some profit booking after RBI called for an additional meeting of its Monetary Policy Committee on 3rd November. Auto stocks were among the major gainers after Maruti reports strong results and ahead of monthly sales data to be released next week for Oct which would include numbers for the Diwali festival. On the global front, while the US GDP growth of 2.6% annualized was better than expected, weak results from tech heavyweight impacted sentiments. Nifty has been consolidating around the 17800 zone for last 4 trading sessions after witnessing a sharp upmove of more than 800 points in 8 sessions. Strong traction in ongoing domestic earnings, FIIs turning buyers and positive domestic cues can lead the Nifty to reach 18000/18200 levels over the next few days.

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