Daily Market Commentary - April 27, 2020 - Bonanza Portfolio

Mr. Vishal Wagh, Research Head

"Today, Nifty opened with a sharp gap-up on stronger global cues and news that RBI will protect debt fund investors and it has provided a special credit line of Rs 50,000 cr. to banks to support debt fund redemption. In initial hours of trading, Nifty managed to test 9376 but it could not sustain there and throughout the day it had corrected to 9269 levels and bounced back in the last 15 minutes of trade. As a result back to back 'Doji' are formed by Nifty which is a clear indication of indecision making in expiry week. Stocks in the Chemical sector are showing momentum on the basis of expectation of an increase in demand due to the shifting of chemical plants from china. Market Breadth was in favor of the Bulls. For every loser, there were a couple of gainers. All sectors participated in today's rally which led by Private banks and IT. India VIX contracted further by more than 2.8%, remained just above 38 levels. USDINR is trading at 76.250. Going forward, Nifty will find support around 9150 levels, and resistance will be around 9376-9390 levels. Above 9400 one can see levels of 9460-9510. Below 9150 it is open for the levels of 8900-8800".

Source : Equity Bulls

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