Tuesday, 18 August 2020

Pre - Market Report 19-08-2020

 Global cues:

 

       The S&P 500 gave back its earlier gains on Tuesday after briefly breaking above an all-time high that was set before the coronavirus pandemic sent the broader market index tumbling. 

       Home Depot said sales last quarter jumped 23% as consumers stuck in their homes increased do-it-yourself projects. Earnings and sales exceeded Wall Street expectations.

       Tesla shares rose 2.4%. The stock is set to split 5-for-1 later this month.

       A sharp rise in bond yields sent gold prices lower.

       SGX Nifty is 19 points up, expect Nifty with a flat to positive opening

 

Indian markets:

 

       Rally in financials leads Nifty back to 5-month high, reclaims 11,400 intra-day.

       Private banks & Reliance contribute most to Nifty's gain today.

       FIIs were net buyers of worth Rs 1134.57 Crore and DIIs were net seller of worth Rs. 379.38 Crore.

       Barring pharma index, all sectors ended in the green, Nifty Realty jumped the most, over 4% followed by Nifty Media and Nifty Financials.

       The fall in volatility seems to favour the bulls as India VIX fell by 4.13 % at 21.30 levels.

       Birlasoft surges to record high after announcing cloud partnership with Microsoft.

       SC adjourned AGR hearing for 19 August. SC asked Centre to clarify its stand on why Reliance Jio, which is earning revenue by sharing RCom spectrum be not asked to pay the AGR related dues to the govt.

       Punjab Housing Finance's shares rallied 12% ahead of the board meeting to discuss fund raise tomorrow.

       The nifty contribution chart for Monday was as follows:

 

 

Trends:

 

       Nifty reclaimed 11,400 levels intraday and formed a bullish candle on daily charts.

       Such breakouts usually lead to a continuation of the trend and the overall market breadth too is in favor of the bulls. The follow-up move in the coming session will be important as if the momentum continues, then it will lead the index towards 11465 followed by 11625.

       Options data suggested that the trading range for the Nifty has been shifted higher to 11,200 to 11,600 levels for the coming few days, compared to 11,000-11,400 in the previous session.

 

Option strategy for tomorrow:

 

       Wait for the trend tomorrow in Nifty before taking any trade. Mostly view for tomorrow is Neutral to upside.

       Nifty’s expected range for tomorrow can be 11300 and 11550.

       Maximum call OI of 27.97 lakh contracts seen at 11,500 strike to act as crucial resistance for tomorrow

       Maximum put OI of 29.95 lakh contracts seen at 11,300 strike to act as crucial support for tomorrow

       The rising hope for a better rural economy given the monsoon progress and expectations of likely higher government spending is boosting the sentiment.

 

Stock Picks of the Day

 

       Reliance closed at 2,118.55 on Wednesday, it recently signed a deal NetMeds which is expected to create positive investor sentiment, expect to 2,158 levels.

       Ashok Leyland has risen by 14% over the last few days with strong vols, expect the stock to continue this uptrend and test 71 levels

       Motherson Sumi has been on an uptrend but the stock saw strong selling with strong vols on Tuesday, the stock has been overbought under stochastics expect the stock to test 123 levels

       Coal India opened up with strong vols and tested 138.70 levels, the stock has formed a doji and can move in either ways with 133.5 being support and 139 being resistance

 

Results on August 18

Muthoot Finance, Triveni Glass, Cosmo Films, Anupam Finserv, Blue Chip Tex Fuel Industries

 

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

 

 

 

 

Analysts at work:



 

Hruday Kaveti
hrudaykaveti7@gmail.com

9493929292

Vidhit Patni
vidhit57@gmail.com

9967084401

 

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