Daily Market Commentary - Nov 2, 2020 - Bonanza Portfolio

Mr Vishal Wagh, Research Head

On Monday, Indian equity benchmarks made an optimistic start but failed to hold gains and slipped into red territory amid mixed cues from Asian peers. Selling in Energy, Oil & Gas and IT stocks, while buying in Telecom, Bankex and Power counters kept downside in check. In the afternoon session, Indian equity benchmarks trade in the positive terrain with Sensex and Nifty trading above 39,880 and 11,700 level. In the last hour of trade, intraday profit booking wiped out the gains and finally, Nifty managed to close with 26 points gain at 11669.

Market focus is widely centered on the U.S. election uncertainty and the latest coronavirus developments. On Saturday the British government announced a national lockdown for England, making it the latest country to return to a nationwide shutdown, which begins on Thursday.

Banking stocks are likely to be in focus as the Supreme Court gets ready to hear the loan moratorium case. India Manufacturing Purchasing Managers' Index (PMI) rose from 56.8 in September to 58.9 in October.

In Nifty 50 top gainers are IndusInd Bank Ltd, ICICI Bank Ltd, Axis Bank Ltd, HDFC Ltd and Bharti Airtel Ltd. The losers were Reliance Industries Ltd, Divi's Laboratories Ltd, Eicher Motors Ltd, HCL Technologies Ltd and TCS Ltd.

For the week, Nifty major support is 11500-11515 and resistance will be 11770-11800. Below 11500 Nifty may test 11220 levels and on the higher side, it may test 12050 levels.

Source : Equity Bulls

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