Daily Markets - Oct 15, 2020 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian benchmark indices fell sharply on Oct 15 after a 10 day upmove. At close the Nifty was down 290.60 points or 2.43% at 11680.40 and the Sensex fell 1,066.33 points or 2.61% at 39728.41. The fall on Thursday reversed the gains of the previous 6 days. Bank Nifty led the fall falling 3.36% to close at 23072.

Volumes on the NSE were just above the recent average with all sectoral indices closing in the red. However the broader indices i.e. Midcap and Smallcap indices fell less.

Weakness in the European markets led to a fresh bout of selling in our markets post 1300 Hrs. European stocks slumped Thursday, with investors concerned about the impact of a second wave of coronavirus on the economy without any imminent stimulus to cushion the blow.

Stalled vaccine trials and Brexit clouds also played a part in the sentiments weakening. In India we additionally had reports of a MFI defaulting on debt servicing due to internal fraud and a financial service firm facing forensic audit directed by the regulator.

The Nifty after so many attempts has failed to go above the January high of 12431. A large bear candle at the top could result in more weakness if Nifty does not stop falling in the next 1-2 days. On falls the Nifty could take support in the 11522-11605 band.

Source : Equity Bulls

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