Daily Market Commentary - Nov 4, 2020 - Bonanza Portfolio

Mr Vishal Wagh, Research Head

On Wednesday, Indian equity benchmarks were on a roller coaster ride. Market trimmed some of their initial gains and trade in green terrain in morning deals, led by buying in IT, TECK and Healthcare stocks. In the afternoon session, It continued to trade in positive terrain with Sensex and Nifty trading above 40,500 and 11,800 level. Finally, Nifty ends the show with the gains of 95 points at 11908.50.

Most of the Asian equity benchmarks are trading in the green on Wednesday, grounded by the gains in the US stock market as the election results trickle in. Investor sentiments also boosted with the firmer US manufacturing activity for the month of September.

Economic Affairs Secretary Tarun Bajaj has said that Finance Minister Nirmala Sitharaman will soon announce the next set of the stimulus package to boost the coronavirus-hit economy.

In Nifty 50 top gainers are IndusInd Bank Ltd, Sun Pharmaceutical Industries Ltd, Reliance Industries Ltd, Divi's Laboratories Ltd, Cipla Ltd. The losers were UPL Ltd, HDFC Ltd, Power Grid Corporation of India Ltd, Axis Bank Ltd and Hindalco Industries Ltd.

Going forward, the uncertainty on the US election will create higher volatility in the global markets and in the case of Nifty, the range of 11650 to 12050 will be checked. In event of cutting either side of the said range, the market may move at least 5-7% in the same direction. It is advisable to trade with strict stop losses to limit the risk in a volatile market.

Source : Equity Bulls

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