Daily Markets - July 15, 2020 - Mr. Deepak Jasani, Head Retail Research, HDFC Securities
Indian equity Markets ended with modest gains on Jul 14 after a volatile session that saw the Nifty swinging wildly in both directions. A final hour selloff even as Reliance AGM speech was being delivered erased the early morning gains. The Nifty finally gained 10.85 points or 0.1% to close at 10,618.2. Volumes on the NSE were on the higher side.
Shares were mostly higher in Asia on Wednesday as investors were encouraged by news that an experimental COVID-19 vaccine under development by Moderna and the US National Institutes of Health revved up people's immune systems just as desired.The Bank of Japan has kept monetary policy on hold even as it revised down its growth forecasts and warned that risks to economic activity and prices were skewed to the downside.
EU leaders are set to meet later this week for an extraordinary summit and it is expected that they will agree on a recovery fund of 750 billion euros for pandemic-hammered economies. The European Central Bank meeting is coming up on Thursday with little change expected.
Technically, with the Nifty selling off sharply from the highs of the day, the bears do seem to have an upper hand. Further downsides are likely once the immediate support of 10577 is broken. Any pullback rallies could find resistance at 10712.