Daily Market Commentary - Oct 22, 2020 - Bonanza Portfolio

Mr Vishal Wagh, Research Head

Asian markets were trading lower, as coronavirus counts continued to climb in Europe and North America. At the same time, there is lesser clarity whether U.S. stimulus negotiations would continue ahead of the presidential election to be held on November 3.

Today Indian equity benchmarks made a slightly negative start tracking weakness in global markets. Selling in Bankex, Auto and Realty weighted down on the sentiments, while buying in IT, TECK and Telecom kept downside in check. In the afternoon session, the market continued their lackluster trade, with Sensex and Nifty trading around 40,500 and 11,900 levels.

There will be a positive reaction in Rubber industry stocks as the commerce ministry recommended for continuation of anti-dumping duty on a Chinese synthetic rubber for five more years. Market participants may take note of Economic Affairs Secretary Tarun Bajaj's statement that the government is open to further stimulus measures to boost the coronavirus-hit economy.

In Nifty 50 top gainers are Bajaj Finance Ltd, NTPC Ltd, Bharti Airtel Ltd, Indian Oil Corporation Ltd and Britannia Industries Ltd. The loser were Hero MotoCorp Ltd, IndusInd Bank Ltd, ICICI Bank Ltd, Infosys Ltd and Eicher Motors Ltd.

Going ahead the Nifty showing range bound volatility between 12050 and 11650. The same range may continue.

Source : Equity Bulls

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