Daily Markets - Oct 19, 2020 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian equity benchmark indices opened with an upgap on Oct 19 and went sideways through the day. At close the Nifty was up 110.50 points or 0.94% at 11873.

Volumes on the NSE were a little below recent average with Banks, Metals and Realty indices gaining the most while Pharma, Media and Auto indices fell.

Shares advanced in Asia towards a 2-1/2 year high on Monday after China reported its economy grew at a 4.9% annual pace in the last quarter, with consumer spending and industrial production rising to pre-pandemic levels. Industrial production rose 5.8% in July-September over the same quarter last year, a marked improvement over the first half's 1.3% contraction. Retail sales rose 0.9% in September over a year earlier, up from a 7.2% contraction in the first half. Chinese markets however fell as the data was slightly below expectations.

European stocks and U.S. equity futures climbed to start a new week, gaining on hopes for a U.S. stimulus package and after Chinese growth data showed that the economy continues to recover from the COVID-19 pandemic.

Nifty is now headed for 12,000 over the next few sessions. Advance decline ratio improved suggesting broadening of the upmove. Sector rotation is in full swing. Stocks are throwing up opportunities to make a quick buck based on news/results.

Source : Equity Bulls

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