Tuesday, 25 August 2020

Pre Market Report (26-08-2020)

Global cues:

·         On Tuesday, the Dow Jones  fell 0.52%, the S&P 500 rose 0.07%, while the Nasdaq Composite added 0.34% to close at a record highs

·         Wall Street fell as data showing an unexpected wobble in consumer confidence increased investor anxiety over the pace of the economic recovery

·         Expiration of the $600 enhanced unemployment insurance benefits was a probable cause of the decreased confidence

·         Top U.S. and Chinese trade officials reaffirmed their commitment to a trade deal that had appeared on shaky ground because of worsening bilateral ties

 

Indian markets:

·         On August 26, the BSE Sensex closed 45 points higher at 38843.88, while the Nifty50 ended with gain of 6 points at 11472.25

·         FIIs were net buyers of worth Rs 1481.2 Crore and DIIs were net seller of worth Rs. 172.97 Crore for August 25, 2020

·         On the sector front, gains in banks and financial services stocks were negated by correction in metal and pharmaceutical shares

·         PNB which suffered heavily due to the Rs. 14,000 crore Nirav Modi Scam, successfully received Rs. 22.33 crores as the first tranche of recoveries in the Nirav Modi Case

·         Tata Motors Chairman N Chandrasekaran on August 25 said the company aims to reduce its total debt to near zero levels in three years and generate free cash flows from FY22 onwards

·         US’s new home sales data and US-China relationship will remain key factors for the market’s economic development

·         The nifty contribution chart for today was as follows:

 

 

Trends:

      After dipping once again to a new low, Nifty recovered to end the day flat with a negligible gain of 5.80 points, or 0.05%.

      Nifty continued forming higher highs- higher lows for the third consecutive session and supports gradually shifted higher with the scope for further upside.

 

Option strategy for tomorrow:

·         Nifty is a buy above 11450, can buy call option for a target of 11500. SL should be 11430.

·         If Nifty can sustain above 11500 can buy call option for a target of 11550.

·         Nifty is sell below 11440, can buy put option for a target of 11400. SL should be 11460.

·         Nifty’s expected range tomorrow can be 11350 and 11550.

·         Upside resistance is at 11500 and 11550 levels.

·         Downside support is at 11440 & 11390 levels.

·         Maximum call OI of 41.08 lakh contracts was seen at 11,500 strike which will act as crucial resistance for August Series.

·         Maximum put OI of 43.71 lakh contracts was seen at 11,000 strike which will act as crucial support for August Series.

Stock Picks of the day:

        RIL - Stock opened at 2,106 on Tuesday and closed 2,082 levels forming a bearish engulfing pattern although the vols were weak. Expect the stock to slide further to 2,065 levels

       IndusInd Bank - Stock opened gap up and closed at the price of 536.50 on Tuesday. MACD shows bullish signal and there have been strong vols. Expect the stock to move up to 544 levels

       Marico - Stock has faced a downward movement in the last 2 trading days, expect the stock to further slide down to 365 levels intraday basis with it being in overbought category on Stochastics

       Bandhan Bank – Stock closed at 293.40 levels on Tuesday with some strong buying in the last 1.5 hours. Expect the stock to test 296.5 levels in the early hours of trade on Wednesday

 

Results on August 26:

Agarwal Industrial Corporation, Ansal Housing, Cupid, DCM, Dolat Investments, Gillette India, Indraprastha Gas, Minda Finance, NACL Industries, Sharda Motor Industries, Shree Metalloys, Superb Papers

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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