Pre-Market Report 27-8-2020

 

Global cues:

•      The S&P 500 and Nasdaq indexes hit record highs on Wednesday following upbeat quarterly results from Salesforce and HP Enterprise as investors bought into tech-related stocks that have thrived during the COVID-19 pandemic.

•      European stocks inched higher on Wednesday as hopes of additional stimulus for Germany and France outweighed worries about rising cases of COVID-19 across the continent.

 

Indian markets:

•       On August 27, the BSE Sensex closed 230 points higher at 39073.92, while the Nifty50 ended with gain of 77 points at 11549.6

•      FIIs were net buyers of worth Rs 1581.31 Crore and DIIs were net seller of worth Rs. 1194.62 Crore for August 26, 2020.

•     Mahindra Inked a pact with Tel Aviv based REE Automotive to explore the production of electric Commercial vehicles.

•     The government will sell up to 15 per cent stake in state-run aerospace and defence company Hindustan Aeronautics (HAL) through an offer for sale (OFS) in the second quarter of this fiscal,, at a floor price of Rs 1,001 per share. The offer could fetch the exchequer around Rs 5,020 crore.

•     Stocks of two-wheeler makers rose on hopes of a GST rate cut, with Hero Moto Corp logging a 52-week high, while Tata Motors continued to gain on the proposal to reduce its debt to near-zero levels.

•     Among the sectoral front, the Nifty Auto index has opened 1.2% higher followed by banks, realty and media stocks. S&P BSE Energy biggest sectoral gainer was up by 2.09% and S&P BSE Telecom biggest sectoral loser was down 2.01%.

•       The nifty contribution chart for today was as follows:

 

 

 

Trends:

●      Nifty ended with gains for the fourth straight session on Wednesday, it formed a bullish candle on the daily chart.

●      Supports are gradually shifting higher, with the momentum in the banking counters which gives scope for further upside.

●      The major trend of the index is positive and a follow-up buying activity is supporting the fresh breakout to commence the next leg of the rally.

●      The market is likely to remain volatile on August 27 amid August F&O expiry.

●      L&T has been performing really well since the lockdown has been lifted.Reached a low of 700 in March but now has recovered to 1000. Currently trading near its short term support/resistance of 980. Movement either side will take it higher or lower.

●      HUL - Fundamentally a very good company, highly overpriced but a leader in the FMCG segment. Its been trading in the range of 2000-2300 for the past 4 months.Currently trading taking support at 2180 levels. Long term view would be bullish for the stock.

 

Option strategy for tomorrow:

•       If nifty opens flat or gapdown there is very good chance that there can be selling pressure.

•       If nifty opens with gapdown, then market can be sideways for a while before making any move.

•       Nifty’s expected range tomorrow can be 11400 and 11620

•      Upside resistance is at 11580 and 11620 levels.

•     Downside support is at 11480 & 11425 levels.

•     Maximum call OI of 33.41 lakh contracts was seen at 11,600 strike which will act as crucial resistance for August Series.

•     Maximum put OI of 40.33 lakh contracts was seen at 11,000 strike which will act as crucial support for August Series.

Stock Picks:

1)    Edelweiss Financial Services Ltd: Stock closed at price of 81.7, just above the daily support of 81.6As per RSI and MACD indicator stock has a buy on a daily chart. Expect the stock to test price range of 85.

 

2)    Graphite India: Stock closed at price of 200.95. Stock formed a bearish strong line indicating a downward movement in the stock. RSI and STOCHRSI has a sell signal on a 5H chart. Expect the stock to touch the price range of 195.

 

3)    RBL Bank: Stock closed at 200.40. Can go to 210-215 levels if it has a breakout after current consolidation. Stoploss at 195. Enter on a dip.

Results on August 27:

Edelweiss Financial Services, NMDC, ARSS Infrastructure Projects, Avanti Feeds, BFL Asset Finvest, BL Kashyap, Chennai Ferrous Industries, Gayatri Projects, GMR Infrastructure, HCC, ICRA, IDFC, PNC Infratech

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