Wednesday, 19 August 2020

Pre - Market Report 20-08-2020


Global cues:

 

·         The S&P 500 and Nasdaq scaled record highs on Wednesday as results from retailers Target and Lowe's trounced estimates, a day after the S&P 500 completed its fastest recovery ever from a bear market

·         European stocks wobbled in thin trading on Wednesday, failing to draw strength from a record run for Wall Street's S&P 500, as investors feared a resurgence in coronavirus cases could dent an economic recovery in the continent.

·         Apple Inc became the first publicly listed U.S. company with a $2 trillion stock market value on Wednesday, as Wall Street investors put aside challenges to its iPhone ecosystem in favour of bets it will only prosper more in the post-coronavirus world.

·         Sgx nifty is 135 points down, so it may be a heavy negative opening for Nifty

 

Indian markets:

 

·         Nifty ended above the 11,400 level on Wednesday but formed a bearish candle on the daily chart.

·         FIIs were net buyers of worth Rs 459.01 Cr and DIIs were net sellers of worth Rs. 97.13 Cr.

·         India VIX fell 2.31 per cent to 19.95 level. Volatility is cooling down gradually and the overall lower volatility suggests the bullish stance could continue with a ‘buy on decline’ strategy in the market

·         According to pivot charts, the key support level for the Nifty is placed at 11,381.57, followed by 11,354.73. If the index moves up, the key resistance levels to watch out for are 11,447.77 and 11,487.13.

·         The Bank Nifty closed at 22,285.90, up 115.30 points. The important pivot level, which will act as crucial support for the index, is placed at 22,206.96, followed by 22,128.03. On the upside, key resistance levels are placed at 22,392.07 and 22,498.23.

·         Maximum Call open interest of 23.92 lakh contracts was seen at 11,500 strike, which will act as crucial resistance in the August series followed by 12,000, which holds 17.52 lakh contracts, and 11,800 strikes, which has accumulated 15.71 lakh contracts.

·         Investors should remain stock specific and keep accumulating only quality stocks in this scenario. Avoid buying on minor repairs, buying on dips should be on large support.

·         Ruchi Soya Industries: Q1 profit at Rs 12.3 crore versus Rs 14.01 crore, revenue at Rs 3,043 crore versus Rs 3,112.3 crore YoY.

·         PNB Housing Finance: Board approved raising up to Rs 1,800 crore equity capital.

·         L&T Finance Holdings: Board approved raising up to Rs 200 crore via non-convertible debentures.

 

Option strategy for tomorrow:

 

       Nifty is at very interesting position right now, It may take support at 11360 and may face resistance at 11450.

       One can short 11500 CE and 11350 PE with Stopp loss of 20 points on either side.

       Nifty’s Expected range tomorrow will be 11300 to 11500.

       Nifty may see resistance at 11440 & 11500.

       Nifty may see support at 11360 & 11320.



Buzzing stocks of day:

 

       HDFC Bank saw selling in the last one hour of trade. As per StochRSI indicator the stock has been overbought, expect the stock to test the level of 1046.

 

       Nestle closed at 16370, stock has broken the support of 16376. As per Williams %R indicator the stock is overbought. Expect the stock to test the level of 16300.

 

       Manappuram is trading just above it's major support of 154, expecting to trade above this value in the near future.

 

       SBI is trading near it's long term resistance of 200.Expect it to not breach this value unless there's buying from the FII/DIIs.

 

Results on July 27

 

HealthCare Global Enterprises, MOIL, Indian Overseas Bank, J Kumar Infraprojects, Accelya Solutions India, Foods & Inns, IRB InvIT Fund, Madhucon Projects, McDowell Holdings, Metalyst Forgings, Sheela Foam, Swelect Energy Systems, Valecha Engineering.

 

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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