Thursday, 20 August 2020

Pre - Market Report 21-08-2020

 

 Global cues:

 

      The S&P 500 and the Dow slipped on Thursday after weekly jobless claims rose unexpectedly back above the 1-million-mark last week

      Federal Reserve's view of a difficult road to economic recovery also dragged the indices

      Crude Oil Futures fell as the jobless claims’ numbers intensified fears of a weakening in demand

      European stocks were hit by a wave of selling after the U.S. signalled a weak recovery

      SGX Nifty is 100 points up, so market will likely open positively

 

Indian markets:

 

      Nifty snapped a 2-day winning streak and held 11,300 in a volatile session

      Reliance and financials dragged Nifty while energy and power stocks gave mild support

      FIIs were net sellers of worth Rs 268.46 Crore and DIIs were net seller of worth Rs. 672.23 Crore

      Nifty Bank ended weekly expiry 1.4% lower, losses led by HDFC Bank & ICICI Bank

      Nifty Metal and Energy were top gainers with Nifty IT losing the most

      SC on AGR dues said that almost the entire AGR dues will be wiped out in the IBC process. August 21 to be the fifth-day of hearing on the same

      RBL Bank's board approved raising Rs 1,566 crore through a preferential share issue to a set of investors

      The nifty contribution chart for Monday was as follows:

 

 

 

Trends:

 

      A small negative candle was formed with a gap down opening and the opening downside gap remained unfilled. The first half was in favour of bulls. Second half dipped after the U.S. slow recovery claim.

      Nifty managed to hold its 11,280-11,300 support zone which remains an important level to watch for, however, any violation of this support zone may cause further weakness towards 11,250-11,200 levels.

 

Option strategy for tomorrow:

 

      A gap up opening will result in a rangebound market before forming a clear trend.

      A flat opening in Nifty may cause nifty to make a negative movement, so one can sell CE or buy buy PE.

      A gap down opening may result in rangebound scenario before making any trend.

      Nifty’s expected range for tomorrow is 11200 to 11450

      Upside resistance is at 11400 & 11440 level.

      Downside support is at 11260 & 11200 level.

      Maximum call OI of 55.40 lakh contracts seen at 11,400 strike to act as crucial resistance for tomorrow

      Maximum put OI of 56.27 lakh contracts seen at 11,300 strike to act as crucial support for tomorrow

      The short-term trend of Nifty is slightly negative. The overall uptrend status remains intact, as long as the area of 11,100 is protected. There is a possibility of minor weakness in the next 1 or 2 sessions with range bound action.

 

Stock Picks

 

      Ashok Leyland after rising more than 40% in less than 2W, this commercial vehicle manufacturer looks extremely bullish. It has crossed it's 5,10 and 20 day moving averages comprehensively.

      Reliance closed at price of 2097, just below the support of 2102. As per STOCHRSI(14) stock is in oversold range and MACD indicator shows a buy for Reliance. Expect the stock to test 2135 level.

      Avenue Supermarts closed at 2286 today, after closing with higher highs for the past 4 days. The standard MACD indicates bullish run along with a healthy RSI of 65. Expect the stock to reach 2320.

      Strides Pharma closed at 567, stock has support at this price. Stock formed a Doji star Bullish Reversal on one hour chart. Expect the stock to move toward the price level of 584.

 

 

Results on August 21:

 

PNB, Indiabulls Housing Finance, Coffee Day, Oil India, Rossari, Union Bank, Jindal Drilling, SportKing India, AGC Networks

 

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:



No comments:

Post a Comment

Pre- Market Report (29-10-2020)

Global cues: •       Dow Jones   fell 3.43% or 940 points, its biggest one-day loss since July 31.   •       The selling in the broade...