Daily Market Commentary - Oct 16, 2020 - Bonanza Portfolio
Mr Vishal Wagh, Research Head
Most of the Asian equity benchmarks were trading lower on Friday, with the weak trend in US stock market overnight amid a resurgence in coronavirus infections and concerns about global economic recovery. Moreover, the sluggish weekly US job data and manufacturing activity slowed by more than expected in October also dampened the investor sentiments.
Today Indian equity benchmarks made an optimistic start, after a sharp fall in the previous session, on the back of short-covering. Indian equity indices added gains in the afternoon session, with both Sensex and Nifty were trading above 39,800 and 11,750 marks.
Stocks related to the farm sector were buzzing as Minister of State for Agriculture Parshottam Rupala said the farm sector has been a star performer in India's pandemic-hit economy, with 3.4 percent growth in the April-June quarter of 2020-2021 fiscal. Adding more optimism, Finance Minister Nirmala Sitharaman said a V-shaped pattern of recovery is being seen in several high-frequency indicators, driven by various measures taken by the government to revive economic growth, hit hard by the outbreak of Covid-19 pandemic.
In Nifty 50, the top gainers are Shreecem, Divislab, Ultratech cem, Bajajfinserv and Heromotocorp. The losers were Nestle, UPL Ltd, HCL Technology Ltd, Asian Paints Ltd, and Reliance Industries Ltd. Market breadth was in favor of Bulls for a couple of gainers there was a loser. India Vix contracted by more than 2.4% to close above 21.50.
Going forward, support will be seen at 11610 levels and resistance at 12040.