Daily Markets - July 9, 2020 - Mr. Deepak Jasani, Head Retail Research, HDFC Securities
Indian equity benchmark indices recovered Wednesday's losses, ending the weekly F&O expiry session on Jul 09 with gains. The NSE Nifty 50 index ended 1.2% higher at 10,832, gaining in 6 out of 7 sessions. India Volatility Index ended at a four-month low, down 5.1% at 24.75.
NSE Volumes were below last 3 day's average with Banks and Metals shares rising while FMCG stocks underperforming.
Most Asian markets rose Thursday following another record close on Wall Street and continued market rise in China as concerns about a new spike in infections around the world were overshadowed by optimism for the economic recovery. Chinese stocks set their longest winning streak in two years and the yuan had strengthened past 7 per dollar overnight, despite rising tension over Hong Kong and the economic uncertainty caused by COVID-19. European stocks rose on Thursday as software giant SAP signalled a rebound in its business from a coronavirus hit and China's stock markets extended a rally, supporting risk sentiment in the continent. Gold propelled to a nine-year high.
India is considering a plan to raise as much as Rs. 20,000 crore ($2.7 billion) by selling stake in the world's largest coal producer (Coal India), and IDBI bank to fund a stimulus program aimed at boosting the virus-battered economy.
Technically, with the Nifty bouncing back strongly, the bulls are not willing to give up easily. Further upsides are likely if the immediate resistance of 10897 is crossed. Weakness could emerge if the supports of 10733 are broken.