Ganesh Komma reviews the Indian market on February 20 after the previous day's sharp sell-off. The Nifty 50 rose 0.46% with selective strength in banks, while gold climbed to ₹15,586 per gram and silver jumped 2.3%. The market remains in consolidation mode with technical vulnerability in IT stocks.
Foreign. Pulse for February 20 markets traded with a steadier tone yesterday after the sharp sell off seen in the previous session. While the rebound lacked strong momentum, there was visible stabilization across frontline indices. The undertone however remains cautious as global queues continue to send mixed signals. Now looking at the entire graph, what happened exactly in the major indices? Talking about Nifty50 which is the top 50 companies as per the market capitalization is up by 0.46%. Mid caps also have shown strength 0.48% maintaining relative strength versus the large cap. But small caps, a marginal flat closing or a slight negative down by 0.18%. Continued under performance indicating selective risk appetite. Talking about one of the strong index which is banking index bank nifty up by 0.70. Steady recovery led by financial heavyweights. Now focusing on the commodities. Gold per gram stood at 15,586 rupees up by 0.53%. Mild defensive positioning is clearly visible and silver 2:51,992 per kg up by 2.3%. Strong momentum compared to gold. Now looking at the entire market breadth and overall sectoral view, the broader market remained largely directionless with alternating pockets of strength and weakness while beaten down sectors attempted a recovery and a follow through buying was very very limited. As we observed in the yesterday's market, the IT index slipped marginally again and is showing signs of technical vulnerability. The emerging price structure suggests that if the support levels are breached the downside pressure could intensify, especially in the IT sector. So I want you to let me know in the chat box what are your key takeaways and what is your way forward for the next week. And if you look at the banking stocks have exhibited strength, provided stability to the indices and the current market theme is the market appears to be in a consolidation phase, recovering from sharp decline which it has seen in the last previous session. We cannot take it as a strong market, but yes we can consider that as a sideways market which we are right now in. So still there is market uncertainty prevailing.
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