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Below the Daily Market Commentary By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd

“Indian markets closed flat today but posted strong gains on a weekly basis. Nifty fell 10 points to end at 15,163 while Sensex closed 13 points higher at 51,544. The broader market too ended on a mixed note with Nifty Smallcap 100 up +0.2%, while Nifty Midcap 100 ended down by -0.2%. Sectorally it was a mixed bag with FMCG, Pharma, Metals, Energy and Media down more than 1%, thus dragging the market into red. Banks and Financials on the other hand provided support – up ~1% along with IT.

Global cues were mixed as markets reacted to corporate earnings amid lack of fresh triggers. Further, most Asian markets were shut on account of Lunar New Year. On the domestic side, Nifty saw subdued trading session with markets slipping into the red in 2nd half of trading session. Investors remained on the side-lines ahead of key macroeconomic data releases amid lack of fresh buying triggers. IT majors Infosys and Wipro rose today more than 1% each and were among the top gainers in Nifty. Cigarettes-to-hotels conglomerate ITC fell 4% after it posted lower December-quarter profit.

Technically, Nifty formed a Doji candle on daily scale while small bullish candle on weekly scale which suggests buying is witnessed at lower zones. Index has got stuck in between 15000-15250 zones from past five trading sessions. Now, Nifty has to hold above 15050 to continue its bullish momentum towards 15250-15500 while on the downside major support can be seen around 15000-14850. Going ahead, with earnings season largely over, global cues will dictate the short term market trend. Market would react to the key macro data - IIP, CPI and WPI data on Monday. From the long term perspective, the structure of the market remains constructive and one can apply buy on dips strategy.”

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