Daily Markets - July 20,2020 - Mr. Deepak Jasani, Head Retail Research, HDFC Securities
(Time Zone: Arizona, USA)
Indian equity markets continued the upward momentum on the fourth consecutive day by holding on to the opening gains after some intra day volatility on July 20. At close, the Nifty was up 120.50 points or 1.11% at 11022.20. The Nifty ended above 11000 for the first time since early March 2020.
Volumes on the NSE were average with IT and Bank stocks doing well, while Pharma stocks underperformed.
Asian shares were mostly lower (though nominally) on Monday as a spike in global coronavirus cases hung over markets awaiting efforts from the euro zone and United States to stitch together fiscal stimulus plans to fight the pandemic.
European stocks recovered from a weak start to edge higher on Monday after reports suggested that EU leaders were making progress on a coronavirus rescue plan after three days of haggling.
Prices for copper, a barometer of economic growth, fell on Monday after data showed rising inventories in Chinese warehouses. Fiscal support is also a focus in Australia where the government will release a 'mini budget' later this week.
Technically, the Nifty remains in a short term up trend. Further upsides are likely once the immediate resistance of 11038 is taken out. Crucial support to watch for any weakness is at 10953.