Daily Market Commentary - Oct 13, 2020 - Bonanza Portfolio
Mr Vishal Wagh, Research Head
Indian market opened flattish and clustered around yesterday's close. Though, US market closed in green but its future moving in red. Other global markets too remained a mixed bag. The Nifty has created spinning tops yesterday and today it has created a Doji pattern. At the same time, yesterday's high is not broken. All these things are showing exhaustion in the market and tried bull want to have rest. The smart rally has been stalled due to supply near to psychological levels of 12000. Though Banknifty remained weak, Nifty got in green due to continuous buying in Reliance and few IT stocks.
Nifty Midcap and small-cap continued to underperform major indices.
In Nifty 50, the top five gainers were Ultratech, Reliance, Hcltech, Eichermotors and Kotakbank. Whereas, major losses were seen from Nestle, Maruti, Divislab, Drreddy and Bajfinance.
Market breadth remained neutral. India Vix contracted by 1.95% and closed at 20.72.
Nifty is clearly giving an indication of exhaustion. On the higher side, one can see the supply may continue till the time 12025 level is not get broken by Nifty. On the other hand, 11800 levels will play the role of the support zone.