Daily Market Commentary - May 20, 2020 - Bonanza Portfolio
Mr. Vishal Wagh, Research Head
- Today, Nifty started the day with a stronger note as Asian markets and the US market future set a positive tone. In the first half banking and NBFC stocks remained under pressure but once the Indian cabinet approved a special liquidity scheme for NBFCS/HFCS all financial space rallied. There is also an expectation form RBI to extend the loan moratorium scheme by three more months. Nifty held on 8900 levels initially posts that there was a good bounce back to test 9093 levels on short recovery.
- In the hope that things will get normal from June onwards, entertainment and transport stocks like IRCTC, INOX, and PVR have seen some bounceback. Drreddy rallied due to better than expected numbers, the stock rallied around 6% for the day.
- Auto stocks have seen a good bounce back as the chances of demand to grow once some relief in lockdown will take place. Now masses will prefer personal vehicles against public transports to safeguard oneself from getting infected.
- Market Breadth moved in favor of the Bulls. For every five gainers, there were two losers. All sectors participated in the rally but Nifty IT and Nifty PSU bank have underperformed for the day. India VIX contracted by 9.8%, remained just below 36. USDINR is trading at 75.66.
- Going forward, Nifty will find support around 8950, and resistance will be at 9400 levels.