Global cues:
• The S&P 500 was almost at a record high on Monday on course for its best August in more than three decades.
• The Federal Reserve's commitment to tolerate inflation and keep interest rates low, positive developments in vaccines and treatments for COVID-19 and a momentum-driven rally in tech-focused stocks have helped the S&P 500 and Nasdaq hit consecutive all-time highs.
• U.S. presidential campaigns are set to take center-stage in the coming weeks with market volatility expected to rise ahead of polling in November.
Indian markets:
• Market snaps 6-day gaining streak; erases almost all the gains seen in last six days. Nifty fell 2.2%.
• FIIs were net sellers of worth Rs 3395.49 Crore and DIIs were net buyers of worth Rs. 680.88 Crore.
• Frontline indices end at over 1-week low, slip 2-4%.
• Fresh LAC tensions and new margin implementation weigh on market.
• Nifty Bank records the biggest single-day fall in the last one month.
• All sectoral indices are in the red; volatility index surges 24%.
• Reliance Industries slips while Future Group stocks gain after the retail business deal.
• Market breadth favours declines; advance-decline ratio at 1:7.
• SEBI to not extend the deadline for new margin rules. Rules go live from September 1, 2020.
• Real GDP growth at (-)23.9% in 1QFY21 by NSO was much lower than what markets were expecting.
• The NIFTY contribution chart for today was as follows:
Trends:
• Volatility moved up sharply due to geo-political tensions and profit-booking concerns in the market. India VIX rose by 24.44% from 18.34 to 22.83 levels.
• The market may see a shaky start to Tuesday’s session and the 11,450 and 11,530 levels will act as key resistance, while supports existed at 11,310 and 11,265 levels.
• Bank Nifty formed an Outside Bar along with a Dark Cloud Cover pattern on a daily scale, which indicates that the bears are attacking from a higher zone after a decent rally of the last two weeks. Support at 23,300 levels.
• Asian Paints - Fell 4% today due to the market crash. Trading near its major support/resistance of 1900. If it could sustain the fall, could potentially rise to 2100 levels.
• Tata Elixir - This stock went from 750 to 1200 in a period of 3 months. Faced resistance at that level and fell 5.64% today. Expect it to fall a bit more before it stabilizes near its support of 1050.Very good fundamentals .Good for long term investment.
Option strategy for tomorrow:
• Short-term bearish trend can continue with the new GDP data.
• If Nifty opens Flat or slight gapdown, it is a clear sell with stop loss of 30 points.
• If Nifty opens with huge gapdown, wait for price action before taking a position.
• Nifty’s expected range tomorrow can be 11100 and 11500.
• Maximum call OI of 25.08 lakh contracts was seen at 11,600 strike which will act as crucial resistance for the coming days.
• Maximum put OI of 17.50 lakh contracts was seen at 11,400 strike which will act as crucial support for the coming days.
• Monday’s session has pushed the market into a broad consolidation phase and no sustainable up-moves can be expected, apart from bouts of sporadic short-coverings.
Results on September 01 :
NALCO, ONGC, Shalimar Paints, Coastal Corp, PVV Infra, Amani Trading
Source: moneycontrol
Disclaimer
Please note that all the recommendations/views/ levels we provide are based on the theory of technical/fundamental analysis and personal observations. This does not claim for sure/ certain profit or any fix returns. we are not be liable for any losses you make on the given takes and levels. You are advised to take your position with your sense, discretion and judgment. only you would be responsible for outcomes of your trades
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