Daily Markets - Sep 21, 2020 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian equity benchmark indices ended the first day of the week with deep cuts, in-line with the soft global sentiments. Nifty fell almost one way post 1215 pm on Sept 21 after European markets opened with deep cuts. At close Nifty ended 254 points, or 2.21 percent, lower at 11,250.55. Indian markets fell the most among its Asian peers.

Traders were quick to unwind their long positions fearing further weakness. Volumes on the NSE were above recent average. All sectoral indices ended in the negative with Telecom, Realty, Metals, Pharma, Media, Auto leading the losses. Midcap and Smallcap index fell 4.1-4.2%.

Asian shares slipped on Monday on fears the global economy may sizzle for a while due to a resurgence of coronavirus infections in Europe, while fading hopes for U.S. fiscal stimulus hopes also weighed. Hong Kong-listed shares of Standard Chartered and HSBC tumbled on Monday following reports that they allegedly moved large sums of suspicious funds.

European stocks fell the most since July after a report on bank allegations and signs that London is heading for a second lockdown. Airlines and travel companies led losses in the Europe Stoxx 600 Index. HSBC Holdings Plc fell to the lowest since 1995 and European bank shares dropped following a story by the International Consortium of Investigative Journalists on lapses in suspicious activity reports by large Banks including JP Morgan, Standard Chartered, Barclays, Deutsche Bank, BNY Mellon.

Emerging market currencies came under pressure with Turkish lira sliding for the seventh straight session to an all-time low of 7.59 against the dollar.

Nifty after making a downgap on Sept 17, has seen acceleration in downtrend on Sept 21. It has support in the 11110-11185 band. A short term reversal is possible from this band.

Source : Equity Bulls

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