Global cues:
• The S&P 500 and Nasdaq ticked lower on Tuesday as President Donald Trump's moves to force China-owned TikTok into a sale of its US operations drew a sharp rebuke from Beijing, ratcheting up tensions as the world slides into a pandemic-fuelled recession.
• All Asian market indices closed the day in green
• Strong US manufacturing data boosted sentiment throughout the world.
• South Korean Kospi, Indonesia's Jakarta composite and Chinese Shanghai Composite gained up to 1.5 per cent.
• Asian markets are mixed and dow futures is trading in negative
• SGX Nifty is down 30 points. so can expect gapdown or flat opening in nifty.
Indian markets:
• At close, the Sensex ended 748.31 points or 2.03 percent higher at 37,688 while the Nifty50 ended at 11,095, up 204 points or 1.87 percent.
• FIIs were net buyers of worth Rs 7O3.74 Crore and DIIs were net seller of worth Rs. 665.69 Crore for August 03, 2020.
• HDFC Bank surges 5% as RBI approves appointment of Sashidhar Jagdishan as the new CEO
• Media index was the biggest gainer led by TV18 Broadcast and Zee Entertainment. Bank, auto, financial services and realty indices were other major gainers on NSE. Nifty IT was the only sectoral index that closed in the red.
• The bounce was pretty much anticipated after the heavy selloff over the previous couple of sessions.
• The rise in the market was mostly because of short covering.
• RIL, HDFC, HDFC bank were major contributors to nifty’s rally today.
Trends:
• Benchmark indices recovered previous session losses and also broke the four-day losing streak on August 4 supported by the banking, energy, infra and pharma stocks.
• As long as the markets hold the current range, these downturns could be short-lived
• Markets may remain in a consolidation phase as there is high uncertainty regarding COVID-19 situation and unsupportive global cues, along with RBI monetary policy announcements on Aug 6th.
• We believe Indian markets would continue to take cues from global peers and the upcoming RBI policy would the next major trigger.
• However further shortcovering is not ruled out.
Option strategy for tomorrow:
• Nifty’s short-term trend is slightly positive and rangebound.
• If Nifty opens Flat it can continue its uptrend.
• If it opens gap up or gap down, then Nifty can be choppy and rangebound before forming any trend.
• If there is a gap up market can’t be choppy and rangebound for most of the session before making any trend.
• BankNifty is weaker compared to Nifty. Can exhibit volatile movement ahead of RBI policy.
• Nifty’s expected range tomorrow can be 11950 and 11220
• Upside resistance is at 11130 and 11200 levels
• Downside support is at 11030 & 10950 levels
• Maximum call OI of 21.33 lakh contracts was seen at 11,500 strike which will act as crucial resistance for August Series
• Maximum put OI of 31.72 lakh contracts was seen at 11,000 strike which will act as crucial support for August Series
• The market’s behaviour in general is likely to remains highly stock and sector specific. While chasing the momentum, one must vigilantly protect profits at higher levels.
Stock picks of the day:
• Tech M showed some weak structure on Tuesday. Expect the stock to slide to 643 levels in the early hours of trade.
• ICICI Bank is in a oversold category on stochastics oscillator and MACD too. Expect the stock to test 358 levels on Wednesday.
• RIL showed 7.5% movement intraday basis, expect to stock to cool off after strong buying. Expect the stock to test 2130 levels.
• Airtel showed formation of bearish candle with strong vols in the last 30 mins of trade, the stock is well below the 30 day moving average. Expect to stock slide to 542 levels.
Results on August 05
Cadila Healthcare, DLF, Canara Bank, Adani Gas, Apollo Tyres, JK Lakshmi Cement, VIP Industries, Godrej Properties
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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