Daily Market Commentary 20 June 2021 by Siddhartha Khemka, Motilal Oswal
Below are Quote on Daily Market Commentary 20 June 2021 by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services
Equity markets opened positive but quickly declined thereafter, to only witness a V-shaped recovery later before finally closing the session on a mixed note. While NIFTY closed 8 points lower(-0.05%) at 15,683, Sensex ended 21 points higher (+0.04%) at 52,344. The broader market however, recovered less and thus underperformed with Nifty Midcap 100 /Nifty Smallcap 100 down ~-1.1%/-0.9% respectively. Majority of the sectors ended in red with Energy and PSU Banks being the biggest loser – down -1.9%/-1.8% respectively. Auto, IT, Metals, Pharma, Realty, Media and Infra – all fell less than -1%. FMCG, Private Banks and Financials were the only sectors to end with marginal gains. India VIX, the volatility index, fell by 3.2% to end at 14.8 levels.
Global cues were weak as investors accommodate to the US Fed’s hawkish decision. Domestically, Nifty witnessed huge volatility today before ending the day unchanged. Weak global cues and China’s efforts to curb commodity prices led to selling pressure. Metal stocks tumbled after China announced plans to release its state reserves of copper, aluminum and zinc to ensure stable prices of commodities. ONGC, JSW Steel, Coal India, NTPC, UPL and M&M were among the top Nifty losers. On the other hand, Adani Ports, Bajaj Auto, HUL, Bharti Airtel, and Grasim were among the gainers.
Domestic Market may consolidate for some-time before resuming its rally. Technically too, the trend remains intact for an up move towards 16k mark. Globally, investors would cautiously track what action does other Central Banks take following Fed hawkish announcement. Domestically, RBI’s step forward, monsoon, opening up of the economy in a phased manner and the pace of vaccination going forward would decide the further direction of the market. Traders should be cautious and adopt stock specific approach as markets get volatile. On the other hand, long term investors can take advantage of this volatility and adopt buy on dips strategy.
Above views are of the author and not of the website kindly read disclaimer
Tag News
We anticipate immense potential benefits from the upcoming Sovereign Gold Bond Tranche in FY...
More News
Morning Nifty, Derivative and Rupee comments 04 May 2023 By Anand James, Geojit Financial Se...