Daily Markets - Sep 24, 2020 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
Indian benchmark indices fell sharply for the 6th consecutive session on the F&O expiry day witnessing their biggest single-day drop in over four months. At close the Nifty was down 326.40 points or 2.93% at 10805.50.
Volumes on the NSE were in line with recent averages with IT, Metals, Banks, Auto, Media, Pharma and Realty all falling sharply.
European stocks and Asian stocks dropped following a rout in tech shares in the US on Wednesday and as investors have largely given up on the idea that the U.S. Congress will provide a new stimulus, while worrying about a recent rise in COVID-19 cases. Economists at Goldman Sachs cut their U.S. growth forecast for the fourth quarter in half, to 3% from 6%. Investors are bombarded by a perfect storm of problems including rising virus infections, new lockdowns, a slowing economic recovery, stalled US stimulus talks and election uncertainty. Investors also fretted that a second wave of coronavirus cases during the northern hemisphere's coming winter will derail the economic recovery.
Nifty has fallen with a second downgap in the present fall. The next support for the Nifty is at 10570. Nifty may see a slower pace of fall now and may reverse its present downtrend over the next 2-3 days.