Daily Market Commentary - Oct 28, 2020 - Bonanza Portfolio

Mr Vishal Wagh, Research Head

Markets trade with marginal losses in the morning, Indices continued to trade lower in the afternoon session, on account of sentiments remained down-beat after UNCTAD said that FDI flows fell 49% in the first half of 2020 compared to 2019 due to the economic fallout from COVID-19.

The S&P BSE Sensex index down 599.64 points or 1.48% at 39,922 and the Nifty50 benchmark down 160 points at 11,730. Auto, telecom and capital goods shares supported the markets. However, losses in IT, PSU and private banks, FMCG, Metal, Financial services and Realty stocks limited the upside.

On the global front, Asian markets were trading mostly in red, as coronavirus infections grew at an alarming pace in the United States and Europe, while uncertainty over next week's U.S. elections added to a risk-off tone.

India VIX gained by 4.9% at 23.28. The breadth remained in favor of Bears as there were five losers against three gainers.

In Nifty 50, the first five gainers are Bharti airtel, UPL, Hero moto, M&M and Eicher motors. Whereas major losers were HDFC, Indusind Bank, ICICI Bank, Adani ports and Tech Mahindra.

Going forward, Nifty is near major support of 11663. Whereas, resistance is seen at 12050 levels. On the break of 11663, the market tone may turn to bearish for a shorter time frame. Support will be seen at 11200 levels.

Source : Equity Bulls

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