Daily Markets - Sep 22, 2020 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian equity markets ended with declines for the fourth straight session on Sept 22, in-line with the other Asian markets. The Nifty after opening flat rose but reacted post 2 pm. At close the Nifty ended at 11,153.65 with a loss of 97 points or 0.86 percent.

Advance decline ratio continued to remain deeply negative. Traders and investors seem to be panicking and taking profits or cutting losses wherever possible. They feel that the current downmove may not rebound meaningfully.

Volumes on the NSE were above average with IT and Pharma indices ending in the positive while Media, Realty and Auto led the losers. Broader markets underperformed the benchmark indices yet again.

Asian stocks were down on Tuesday morning, reacting to a fall in U.S. stocks overnight over the rising number of COVID-19 cases and the status of the latest U.S. stimulus measures.

Europe's stock markets recovered with a fairly mild rebound on Tuesday, a day after rising second waves of the coronavirus epidemic caused the region's biggest wipeout since June. Renewed fears of lockdown-related restrictions continue to depress investor sentiment and the banking sector remains under pressure.

The Nifty has displayed a feeble rebound to the sharp fall seen on Monday. As expected, Nifty took support from ~11100. While some bounce cannot be ruled out, Nifty seems to headed to 10886 over the next few sessions even as lack of positive triggers and prevalence of negative or concerning news continue to impact risk-on sentiments.

Source : Equity Bulls

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