Daily Market Commentary - Aug 12, 2020 - Bonanza Portfolio

Mr Vishal Wagh, Research Head

The Nifty started the day in the red on the back of weak global markets. The US market failed to sustain the first-half gains due to uncertainty about the second stimulus package. In the first 15 minutes, Nifty has touched low for the day and post that there is no looking back. Consistently buying support pushed Nifty closer to yesterday's close and recovered losses for the day. Pick of the stocks remained SBI due to breakout from consolidation and HCLTECH for hitting new 52 week high.

Market breadth remained strongly in favor of Bulls. For five gainers, there were three losers. India VIX contracted by 2.20%, remained below 21. HCLTECH, SBI, Eichermotors, Tech Mahindra and Hero Motors were the first five gainers and Shreecem, Bajaj Finserv, Drready, Britannia and Nestle were draggers for the Nifty. USDINR trading at 74.82.

There are expectations of a good announcement on taxation, Health Card, New FDI announcement and dedicated financial institution for infrastructure funding.

Going forward, major support will be seen around 11110 and Resistance will be 11380-11420.

Source : Equity Bulls

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