Daily Markets - Oct 1, 2020 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian equity benchmark indices ended the truncated week on a strong note on Oct 01, extending the gains made during Monday's trading session. The Nifty rose with a second upgap in 4 days. At close the NSE Nifty 50 index ended 169 points, or 1.51 percent, up at 11,416.95. Nifty ended at a two week high.

Volumes on the NSE were below recent average with Banks, Media, Auto, IT and Metals indices ending in the positive while Energy and Consumer Durables indices ending in the negative. Broader markets underperformed the benchmarks in today's session.

Among macro news, positive cues from GST and PMI numbers boosted sentiments. India's September GST collections stood at Rs 95,480 crore against Rs 86,449 crore (MoM). The IHS Markit India Manufacturing Purchasing Managers' Index rose to 56.8 in September 2020, from 52 in August. This is the second straight month of expansion and the highest reading since January 2012.

Global equity markets extended gains on Thursday following renewed hopes for fresh US stimulus measures, though concerns ahead of the America's presidential election continue to loom large.

Traders chose to carry most long positions over a three day weekend reflecting risk on sentiments. Focus has now shifted back to largecaps/frontline stocks. Nifty could now face resistance in the 11534-11586 band.

Source : Equity Bulls

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