Daily Market Report (13-08-2020)

  Global cues:

•       Wall street indexes jumped on Wednesday with S&P crawling towards a record high in a broad rally led by tech stocks.

•       Telecommunication stocks boosted European markets on Wednesday after a billion-dollar takeover offer for Switzerland’s sunrise communication.

•       London’s FTSE 100 gained on bets of more stimulus after a collapse in UK’s Quarterly economic output.

•        Trends on SGX Nifty indicate a positive opening for the index in India with a 17-point gain.

Indian markets:

•       On Wednesday, the BSE Sensex closed 37 points lower at 38,369.63, while the Nifty50 ended with loss of 14 points at 11,308.40.

•       FIIs were net buyers of worth Rs 351.15 Crore and DIIs were net seller of worth Rs. 939.67 Crore for August 13, 2020

•       Mixed trend seen on the sectoral front with metal, pharma and FMCG Indices ended lower, while buying was witnessed in Auto and PSU banks

•       Nifty PSU banks gained 4% on reports that government is considering extending the ratna title to state owned lenders like SBI and BOB.

•       Ultratech cement plans Rs. 1500 crore capex in FY21

•       Going ahead, macroeconomic data like CPI, IIP and Supreme Court hearing on AGR case (Friday), US Stimulus package would be on investors’ radar

•       The nifty contribution chart for today was as follows:

Trends:

•       The index formed a 'Doji' candle on the daily chart for yet another session.

•       A small body with a lower shadow on Nifty's daily chart suggested the formation of High Wave-type pattern and indicated that the bulls are holding their defence.

Option strategy for tomorrow:

•       The short-term trend of Nifty is positive with buy on dips strategy

•       A gap down or flat opening can give bullish trends, however, if Thursday witnesses a gap up opening, one should consolidate before trading. Overall the market is expected to remain bullish.

•       Any violation of the 11,240 level may cause weakness and make Nifty drift towards the 11,200-11,160 zone.

•       Upside resistance is at 11350 and 11390 levels

•       Downside support is at 11210 & 11170 levels

•       Maximum call OI of 20.78 lakh contracts was seen at 11,500 strike which will act as crucial resistance for August Series

•       Maximum put OI of 30.64 lakh contracts was seen at 11,000 strike which will act as crucial support for August Series

 

 

Stocks for the day-

•       Reliance- The stocks is consolidating and might be rangebound before any big move. Buy/Accumulate on dips. The range for movement could be 2104- 2142. (Be quick to book profits)

•       Mothersumi- The stock has a little upside left. It can be bought on Dips after probable profit booking on Monday. Target- Rs. 120-123

•       IGL- The stock has given a breakout from a resistance of 395. Long positions should be taken with a stop loss of 393-392(buy on dip). A triple bottom formation and Bullish Engulfing was formed on 1Hr timeframe

•       Axis Bank- The trend seems to be bullish. Buy on dips and maintain a stop loss in a range of Rs 442-440.

                 (Also keep tabs on Jubilant foods, Self-analyse as there is a likely movement)

 

Results on August 13

 

Eicher Motors, Bharat Petroleum Corporation, Hero Motorcorp, Tata Steel, GAIL India, Aditya Birla Fashion, Grasim Industries, Godrej Industries, Shoppers Stop

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 fixed returns. we are not 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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