Market Commentary

Daily Market Commentary - Oct 7, 2020 - Bonanza Portfolio



Posted On : 2020-10-07 19:05:48( TIMEZONE : IST )

Daily Market Commentary - Oct 7, 2020 - Bonanza Portfolio

Mr Vishal Wagh, Research Head

Indian market started the day with very small gains. The Global cues were a mixed bag. As US president Mr. Donald Trump called off the stimulus negotiation ahead of the US election in early November 2020. Once the Dow future started to gain momentum today the emerging markets followed the suit. Coming back to the domestic market, Nifty shown strong momentum and hold above 11700 for a major part of the day. Finally closed just below 11740.

Cement stock rallied for the day on news of an increase in price per bag by Rs. 20-25. At the same time, restarting infrastructure projects boosting demand. IT stocks continued to contribute to holding Nifty on a higher level on the back of good quarterly numbers. The heavyweight Reliance also rallied in initial hours thanks to news of new fund investment in Reliance retail. Bajfinance corrected post the news of higher provision for covid-19. Auto companies continued its strong momentum due to stronger auto sells numbers last week and festival season next month.

In Nifty 50, the top five gainers were Titan, Bajaj-auto, Heromoto, Tatamotors, Maruti and Reliance. Whereas, major losses were seen from Bajfinance, BPCL, Tatamotors Powergrid and Coalindia.

Market breadth remained in favor of bears. For every eleven losers, there were nine gainers. India Vix contracted by 0.35% closed at 19.64.

Going forward, major support will be seen around 11450 and Resistance will be 11780.

Source : Equity Bulls

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