Daily Market Commentary 15/02/2021 By Mr. Siddhartha Khemka, Motilal Oswal Financial Services
Below the Daily Market Commentary By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd
“ Indian markets opened gap up and continued its positive momentum throughout the session to close at yet new all-time high. Nifty rallied 151 points to end at 15,315 while Sensex surged 610 points higher to cross 52k mark and close at 52,154. The broader market too gained with Nifty Midcap 100/ Nifty Smallcap 100 up +1.3%/+0.4%. Sectorally it was a mixed bag with Banks and Financials clearly driving the rally – up 3.3%/2/9% respectively. Realty was too up 1.5%, followed by Infra (+0.6%), Auto (+0.4%) and FMCG (+0.1%). On the other hand, IT, Metals, Energy, Pharma and Media shed 0.3 to 0.5%.
Global cues were positive on optimism about the rollout of Covid-19 vaccines and new US fiscal aid, while tensions in the Middle East drove oil to a 13-month high.. On the domestic side, Indian equity benchmarks after a week of consolidation, clocked yet another session of record highs on the back of strong December quarter earnings. Strong corporate earnings have ignited hopes of faster economic recovery while buoyant global markets also aided risk sentiment. Moreover, better than expected December IIP number and Jan CPI number – which fell to 16-month low, boosted market sentiment. Banking and financial services shares powered the rally, with Nifty Bank index having rallied a massive 23% in Feb month so far. PSU Banks gained after the RBI announced open market operation worth Rs10000cr on Feb 25. Axis Bank, ICICI Bank, SBI, Bajaj Finance and IndusInd Bank were among the top gainers on the Nifty, while losers included HDFC Life, SBI Life Insurance, Dr Reddy’s Laboratories, Hero MotoCorp and TCS.
Technically, Nifty formed a small bodied Bullish candle on daily scale and is forming higher highs - higher lows from the last three sessions. Now it has to hold above 15200 to continue its bullish momentum towards 15500 while major support exist at 15100-15000 zones.
Going ahead, the market could continue with its positive momentum given optimism over Covid-19 vaccines rollout, quicker economic recovery and hopes for further US fiscal stimulus. With earnings season largely over and no major event ahead, global cues will largely dictate the short term market trend.”
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