Daily market commentary - 27th January 2020 - BONANZA PORTFOLIO LTD

By Mr Vishal Wagh, Research Head

"Corona Virus's impact dragged the global market in the red zone. As news is giving clues, conditions in China are deteriorating further with the passing time. This is most probably a strong reason to see a rally in pharmaceutical companies. At the same time, Dr Reddy has come with a good set of numbers. Banking stocks remained under pressure and profit booking has seen in Midcap counters. Nifty broken 50 days simple moving average and closed just below it. Moving forward 12,088 and 12,048 levels will play last hope for bulls. Market breadth remained in favour of bear for every four winning stocks, there were five losers. India VIX gained by 11.40%. Major losses have seen in the Nifty Metal and Nifty PSU Banks index whereas, pharma was only winning index in all sectoral indices. INR lost fourteen paise against USD till the time. Due to the natural hedging nature of yellow metal, it is managed to hold in green so far. Volatility has increased into the market so, it is suggested to stay away from the market for the time being."

Source : Equity Bulls

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