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

“Indian equity markets continued its upward journey for second consecutive day with Key indices closing at record highs. Sensex hit intraday high of 49,874 just 126 points short of the 50k mark. Nifty was up 124 points (+0.9%) to close at 14,644, while Sensex gained 394 points (+0.8%) to 49,792. The broader market performed in-line with Nifty Midcap 100/Nifty Smallcap 100 up +1.0%/+0.6% respectively. Except for FMCG (-0.2%), all other the sectoral indices ended in the green with Auto (+2.3%), IT (+2.2%) and PSU Bank (2.1%) being the major gainers.

Global cues were positive ahead of Joe Biden's inauguration as U.S. President. Further comments from U.S. Treasury Secretary nominee Janet Yellen backing for more stimulus to help the world's largest economy ride out a pandemic-driven slump fuelled hopes of a speedy economic recovery. On the domestic side, positive global cues, sustained FII inflows and strong corporate earnings kept the sentiments high. Domestic Paints stocks are witnessing interest as the IPO for the 5th largest Paints company - Indigo Paints opened for subscription. We recommend Subscribing to Indigo IPO for Long Term considering its strong & differentiated product portfolio, robust expansion plans and high growth prospects.  

Technically, Nifty formed a Bullish candle on daily scale and continued its formation of higher tops - higher bottoms from the last two sessions. Now, it has to hold above 14500 zones to extend its move towards 14750 then 15000 zones while on the downside immediate support exists at 14450 and 14350 levels. India VIX further cooled down by 5.9% to 21.55 levels. However, volatility could be comparatively higher ahead of the Budget 2021.

Going ahead, market momentum could continue for few days on the back of positive global cues and good earning season so far. However, run-up to the Budget expectations could add some volatility to the market. As the long term trend of the market is positive, we would advise investors to keep accumulating quality stocks on any dips.”

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