Daily Markets - Oct 26, 2020 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian equity benchmark indices ended lower on Oct 26 amid weak global cues and an elusive stimulus deal in the U.S. Nifty fell from 1100 Hrs after a sedate opening. It made an intraday low at 1400 Hrs from where it showed a feeble bounce. European indices and Dow futures drove the movements in Nifty. At close the Nifty 50 index, ended 1.36% lower at 11,767.

Among indices, all indices ended in the negative with Metals, Auto, Realty and Pharma indices falling the most.

Asian markets are mixed Monday with traders increasingly pessimistic that US lawmakers will pass a new stimulus package before next week's election, while spiking virus cases fanned worries about the economic impact of new containment measures. European shares fell on Monday after SAP, one of the region's biggest tech groups, warned that the new coronavirus lockdowns in countries have hit demand for its services and as oil prices declined. Oil prices sank more than 3 per cent on fears that rising infections would hit demand.

Nifty has filled the upgap formed on Oct 19 and shows a lower top formation. 11661 is the crucial level, a fall below which will mean a lower bottom formation in addition to lower top. On upsides, 11876-11897 could provide resistance.

Source : Equity Bulls

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