Daily Markets - Aug 19, 2020 - Mr. Deepak Jasani, Head Retail Research, HDFC Securities

Last hour profit booking led to Indian benchmark indices ending with marginal gains on August 19. At close, the Nifty was up 23 points or 0.20% at 11408.40. This was the third straight day of gains for the benchmark indices.

Volumes on the NSE were in line with recent averages with Media, PSU Bank and Realty stocks gaining while FMCG, IT and Pharma stocks falling a bit. The smallcap index ended with gains of 1.24%. The India Volatility Index ended 2.7% lower at 19.88, the lowest closing level for the index in six months suggesting some sort of fearlessness on the part of traders.

Asian markets ended mostly in the red amid worries about US-China tensions after a firm start on the back of record highs at Wall Street. Concerns rose after US President Donald Trump confirmed he had cancelled talks with China and the US State Department asking colleges and universities to divest from Chinese holdings in their endowments. Also worries that China could retaliate against U.S. moves against network equipment maker.

Huawei, social media company ByteDance and other Chinese technology giants by targeting U.S. chip makers and others dampened sentiments.

European stocks inched higher in thin trading on Wednesday, failing to draw strength from a record run for Wall Street's S&P 500, as investors feared a resurgence in coronavirus cases could dent an economic recovery in the continent.

Nifty could not build on the gains made on Aug 18; however a positive close and a good broader market keeps hope alive for bullish traders for tomorrow.

Source : Equity Bulls

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