Thursday, 27 August 2020

Pre Market report (28-08-2020)

Global cues:

•     Fed Chairman Jerome Powell on Thursday announced a radical shift in the inflation goal, saying the US central bank would now be looking at inflation 'averages' of 2 per cent over time.

•      The S&P 500 and the Nasdaq rose to record highs on Thursday as the Federal Reserve sought to achieve inflation averaging 2% over time in an attempt to lift the U.S. economy out of a deep pandemic-driven recession.

•      European equity markets ended lower on Thursday with resource stocks weighing the most, while an aggressive growth strategy from the U.S. Federal Reserve was met with little fanfare locally.

 

Indian markets:

•     On August 27, the BSE Sensex closed 40 points higher at 39113.47, while the Nifty50 ended with a gain of 10 points at 11,559.25.

•      FIIs were net buyers of worth Rs 1164.32 Crore and DIIs were net seller of worth Rs. 809.27 Crore for August 27, 2020.

•     Among the sectoral indices, BSE energy fell over a percent. Oil & gas, utilities, telecom, FMCG also ended in the red. On the other hand, BSE realty surged 6.63 percent.

•     Realty stocks rallied in trade after Maharashtra government on Wednesday announced a cut in stamp duty and other levies for buying and selling of properties in urban and rural areas.

•     Shares of HAL, the state-owned aerospace and defence company, tanked over 14 per cent to Rs 1,010.95 on the BSE, a day after the company informed that the government plans to sell as much as 15 per cent stake in the company through a public offering of shares.

•     The offer for sale (OFS) of Hindustan Aeronautics Ltd was subsrcied 1.60 times by non-retail investors on the first day of the issue.

•    GMR Infrastructure Limited announced a strategic restructuring of Group Companies, which involves a vertical split demerger of the non-airport business of GIL into GMR Power and Urban Infra lImited (GPUIL)

•    The Indian rupee ended 0.65% stronger against the dollar at 73.8100, its highest level since March 13

•     The nifty contribution chart for today was as follows:

 

Trends:

      Nifty50 on Thursday could not add on to opening gains and ended the session almost flat despite opening above 11,600 levels.

      The index formed a small bearish candle on the daily chart, but continued to form higher highs and lows for the fifth straight session.

      The trend broadly remains positive, but a small profit-taking move cannot be ruled out, as charts looked overbought on the short-term scales. “Consider buy on dips” Strategy.

 

Option strategy for tomorrow:

       Nifty is sell below 11550 for a target of 11500. Stoploss should be 11570.

       market can be rangebound above that level.

       Nifty’s expected range tomorrow can be 11480 and 11620

      Upside resistance is at 11600 and 11650 levels.

•     Downside support is at 11525 & 11490 levels.

Stock picks of the day:

       HDFC - Stock closed at 1,864 on Thursday forming a piercing signal with strong vols. Expect the strong to continue its bullish momentum testing 1890 levels in the early hours of trade.

       Mahindra & Mahindra - Stock opened gap up and closed at the price of 636.75 levels on Thursday. Stochastics show the stock in underbought levels, expect the stock to test 645 levels on Friday

       Bharti Airtel - Stock has faced a downward movement in the last 3 trading days, expect the stock to further slide down to 505 and continuing the weak momentum due to the AGR dues

       Bandhan Bank – Stock closed at 311.10 levels on Thursday testing its 30 day MA, expect the stock to test 316 levels on an intraday basis on Friday with MACD showing a bullish signal

 

Results on August 28:

Archies, Centum Electronics, GP Petroleums, Industrial Investment Trust, Inox Wind, khadim India, Kohinoor Foods, Magnum Ventures, SJVN, Polytex India

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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