Sunday, 16 August 2020

Pre - Market Report 17-8-2020

 

 Global cues:

       U.S. stocks witnessed a mix on Friday with oil & gas, telecom and financials leading shares higher, and healthcare and technology pulling them down.

       Investors will focus on the release of the minutes from the Fed's last meeting, due on Wednesday, for insights into the outlook for monetary policy through the end of the year and beyond.

       The Labor Department will release weekly data on initial jobless claims on Thursday.

       SGX Nifty is a good 80 points up, so expect Nifty to open positively.

 

Indian markets:

       On Friday, the BSE Sensex closed 433 points lower at 37.877.34, while the Nifty50 ended with loss of 122 points at 11,178.40.

       FIIs were net buyers of worth Rs 46.39 Crore and DIIs were net seller of worth Rs. 797.08 Crore for August 14, 2020

       The Dow Jones Industrial Average came out of its weekly range for a fresh leg of rally and touched 28,000 levels. It was up by 1.8% on weekly basis. 

       The rally in the gold met with a speed breaker. Gold fell to Rs 50,000 levels but managed to settle the week at Rs 52,451. On weekly basis it was down by 4.7 percent. The immense fluctuation was due to the heightened geo-political uncertainty and the ongoing US-China trade tensions.

       In the coming week, participants will be eyeing the next hearing on the AGR dues, which is scheduled on Monday. And, since we are closely following global markets, developments on the further stimulus package in the US, US-China trade tension would also be on investors’ radar.

       Traders should remain cautious as odds of a further correction is high. Investors should also not participate during such euphoric times triggered by liquidity.

       The nifty contribution chart for Friday was as follows:


Trends:

       Nifty witnessed sharp volatility on Friday after struggling to cross the resistance in the 11,300-11,350 zone and ended with a deep cut.

      Nifty formed a small bearish candle on a weekly scale which looks like a small pause in overall positive momentum.

       Indian markets will be following global cues and will be consolidating this week. RIL to remain weak.

       Nifty’s expected range for the coming week can be 11000 and 11500.


Option strategy for tomorrow:

       A gap up opening in Nifty may cause it to be rangebound before it may fall. If a flat opening is witnessed, wait for Nifty to make a trend and for a gap down opening, Nifty can see rangebound to upward momentum.

       Upside resistance is at 11240 and 11350 levels

       Downside support is at 11160 & 11000 levels

       Maximum call OI of 22.55 lakh contracts was seen at 11,500 strike which will act as crucial resistance for August Series

       Maximum put OI of 33.74 lakh contracts was seen at 11,000 strike which will act as crucial support for August Series

 

Stock Picks of the Day:

       Reliance Industries closed at 2113.80 on Friday, the stock showed some weak structure with some muted volumes. Expect the stock to slide to 2,095 levels intraday

       Airtel recently broke the lower support zone of the Bollinger bands. The stock has shown some downward movement over the last week. Expect the stock to slide further to 523 levels

       Sun Pharma formed a green candle on Friday with decent vols after 3 negative candles. There was some strong buying in the last 30 mins on Friday. Expect the stock to move to 540 levels on Mon

       Coal India gave a breakout on Friday with strong vols expect some strong buying to continue in the first half an hour of trade pushing the stock to 135 levels

 

 

Results on August 17:

Petronet LNG, Can Fin Homes, Lux Industries, Orient Paper, Sical Logistics, Suven Pharmaceuticals, etc

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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