Market Commentary - February 4, 2020 - BONANZA PORTFOLIO LTD

Mr Vishal Wagh, Research Head, BONANZA PORTFOLIO LTD

"Nifty formed an exhaustion gap and sustained it throughout the day. It seems bears are trapped now. The losses of the budget day have been covered by the market. Sharp fall in India VIX by 9% is indicating that the current rally has further legs on the upside. A major contribution has been seen from Nifty Realty, Nifty Bank, Nifty Financial Services, and Nifty Metal. Whereas, Nifty Media has failed to contribute anything and closed flattish. The top five gainers in Nifty50 are Titan, IOC, Infratel, Bajaj Financial Services, and Hindalco. Whereas, Zee Limited, Yes Bank, Bajaj Auto, Eicher Motor and Hindistan Unilever drag the Nifty. Paint and oil marketing company stocks like Asian Paints, Berger Paint, BPCL, HPCL, and, IOC has gained momentum on the back of a sharp fall in crude oil. Stocks like Titan and Honeywell Automation gained due to strong results. Bajaj Twins - Bajaj Finance and Bajaj Financial Services have bounced back post sharp correction on budget day. Going forward, Bulls may take charge and cover the lost ground in the process, V shape recovery cannot be ignored. The level of 11,780 will work as a major support zone."

Source : Equity Bulls

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