Daily Markets - Sep 10, 2020 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
Indian equity benchmark indices broke a two-day losing streak with strong gains on Sept 10. Reliance was the star of the day accounting for a very large part of the Nifty gains. At close the NSE Nifty 50 index ended 1.52% or over 171 points higher at 11,449.25.
Volumes on the NSE were above recent averages. Among sectors PSU banks did well while Metal index fell the most.
Global stock markets were mixed Thursday after Wall Street rebounded from a three-day slump for tech stocks. Asian markets ended mixed and European markets remained in a tight range ahead of the ECB meet scheduled for Thursday. One European Central Bank policymaker dampened hopes of fresh stimulus measures. Klaas Knot, the head of the Dutch central bank, told the Eurofi magazine that risks to the eurozone's recovery had receded, given economic data over the summer. Indonesian stocks fell by more than 5% on Thursday following an announcement that its capital city Jakarta will reinstate partial lockdown measures to slow the spread of the coronavirus.
Nifty has risen with an upgap and closed above the recent resistance of 11437. The level of 11507 could provide the next resistance. The rally will have to be more broad based for it to sustain.