Daily Market Commentary - May 18, 2020 - Bonanza Portfolio

Mr. Vishal Wagh, Research Head

Today, Nifty opened flattish and sold-off throughout the day. Small recovery was seen in the middle of the day but it failed to sustain. Nifty closed above 8800. The range (9100-9400) finally broken on the downside.

Banking stock witnessed selling pressure on the back of suspension of new bankruptcy cases for one year, declared in a stimulus package by the Finance Minister.

Market Breadth remained Bearish. For every gainer, there were more than a couple of losers. Except IT and Pharma other sectors witnessed deeper cuts in today's trade. India VIX gained by 7.5%, remained just below 41. USDINR is trading at 76.01 with a gain of 0.22%.

Going forward, Nifty has resumed a bearish trend below 8800 it may test 8600-8500 levels. On a higher level, 9000 will work as resistance.

Source : Equity Bulls

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