Pre Market Report (10/08/2020)

 Global cues:

•       Major U.S. stock indexes closed mostly higher Friday, capping off another week of sharp gains.

•       US is likely to announce another round of financial stimulus this week, this move will lift the overall sentiment of the markets.

•       Global markets will definitely be impacted by the heightened US-China tensions after US order to ban WeChat and Tiktok last week

•       European Stocks recovered to post modest gains on Friday, after better than expected US jobs data lifted the mood.

•       Nifty futures on the Singapore Exchange-traded 17 points, or 0.15 per cent lower at 11,209.50, in signs that Dalal Street was headed for a muted start on Monday

•       Financial markets in Japan and Singapore are closed on Monday for public holidays

 

Indian markets:

·         Benchmark Indices, Sensex and Nifty rallied over 1% each in the Past week.

•       FIIs were net buyers of worth Rs 397.32 Crore and DIIs were net seller of worth Rs. 438.62 Crore for August 07, 2020

•       Macro-Economic data – IIP and CPI numbers, earnings and global cues will influence the market this week.

•       IndusInd Bank acquires 7.82% stake in Eveready Industries by Invoking pledged shares.

•       Mind Space Business park REIT list at 11% premium

•       The supreme court is expected to give its final Adjusted Gross Revenue verdict today; Bharti Airtel and Vodafone Idea will be in focus.

•       Gold price slipped in Indi after it fell more than 2% on Friday in US as investors hopes of a rebound in economy got a boost from stringer than expected US jobs data.

 

 

Trends:

•       Nifty on Friday formed a small bullish candle but an Inside Bar, as it traded inside the trading range of the last session and ended a volatile session marginally higher.

•       The immediate support to be watched is at 11,100 and an important lower support for trend reversal is placed at 10,900.

•       The market continues to pile on incremental gains. However, this time, it has made a lower top and bottom on the weekly charts. Nifty has managed to keep its head above its key 50-week moving average at 10,912 and 100-week moving average at 11,018.

 

Option strategy for tomorrow:

•       The short-term trend of Nifty continues to be positive with volatile movement. 

•       A gap up opening can consolidate and a gap down opening can result in bullish trends. A flat opening is expected to consolidate before forming any trend.

•       Nifty’s expected range tomorrow can be 11100 and 11350 and for the week can be 11000 to 11500.

•       Upside resistance is at 11280 and 11350 levels

•       Downside support is at 11000 & 10910 levels

•       Maximum call OI of 21.05 lakh contracts was seen at 11,500 strike which will act as crucial resistance for August Series

•       Maximum put OI of 30.56 lakh contracts was seen at 11,000 strike which will act as crucial support for August Series

•       One should maintain extra caution while investing in stocks prefer investing in Index Majors, as they are easy to hedge.

 

Stocks picks for the day

•       Idea-buy: The sentiment is bullish on Idea; Intraday positions can be taken with targets of Rs. 9.5 .

•       Tata Motors-Buy: Long positions can be taken with a Stop Loss of 117 and positional target of Rs. 140 after a sharp volume increase.

•       L&T-Buy: Stock is consolidating in a symmetrical triangle with a likely breakdown. Short positions can be initiated after stock breaks Rs 910 level

•       Reliance-Buy- The sentiment is bullish and long positions can be taken with target of Rs. 2157(Resistance) and Rs. 2112 is the key support level.

 

Results on August 10

Bank of Baroda, Power Grid Cooperation, Titan Company, AstraZeneca Pharma, CARE Ratings, Ujjivan Financial Services, Force Motors etc

Source: moneycontrol

 

Analysts at work: