Daily Market Commentary - Oct 21, 2020 - Bonanza Portfolio

Mr Vishal Wagh, Research Head

On Wednesday most of the Asian equity benchmarks are trading higher, catching up with the gains in the US stock market overnight amid positive earnings reports from US companies.

Indian equity benchmarks opened with gap-up Wednesday following firm cues from global peers. Buying is seen in Metal, Bankex and Oil & Gas stocks. In the afternoon session market slip into the red, both Sensex and Nifty were trading below 40,500 and 12,000 marks. Selling witnessed in FMCG, IT, and Media. In last the hour, recovery in Banking and financial pulled the market in green.

The latest analysis of RBI has shown that aggregate sales of private sector manufacturing companies recorded a sharp contraction of 41.1% YoY in Q1FY21, reflecting the impact of the pandemic induced lockdown.

In Nifty 50 top gainers are Power Grid Corporation of India Ltd, Bharti Airtel Ltd, Hindalco Industries Ltd, Adani Ports and Special Economic Zone Ltd, Tata Steel Ltd. The loser was Britannia Industries Ltd, Hero MotoCorp Ltd, TCS Ltd, Bajaj Finance Ltd and SBI Life Insurance Company Ltd.

Going forward, Nifty will face resistance at 12020-12050 range and support at 11750-11780 range. The global markets will continue to remain volatile as the US election dates are coming closure.

Source : Equity Bulls

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