Pre Market Report(11-08-2020)

  Global cues:

•       Wall street indexes opened a touch higher on Monday after President Donald trump signed executive orders over the weekend to support the country’s economy till a more concrete stimulus could be passed.

•       European shares were largely flat on Monday as renewed U.S China tensions hit technology stocks, but a slowing decline in China’s producer prices and rising oil prices limited the losses.

•       Markets in Shanghai and Seoul ended on the appositive note, while Hongkong settled in Red.

•       The Indian stock market is expected to open in the green amid cautious trade-in Asia due to strained US-China relations.

•       Trends on SGX Nifty indicate a positive opening for the index in India with a 30 points gain

Indian markets:

•       Equity benchmark Sensex jumper 142 points on Monday, NSE Nifty climbed 56.10 points and ended close to 11270.15.

•       FIIs were net buyers of worth Rs 302.88 Crore and DIIs were net seller of worth Rs. 504.92 Crore for August 10, 2020

•       All sectoral indices end with gains with Nifty Pharma leading the pack.

•       Interglobe Aviation Ltd, to raise up to 40 billion rupees through the sale od shares to institutional investors.

•       Markets would react to the supreme court hearing on Adjusted Gross Revenue dues and stocks from telecom and banking will remain in focus.

•       Rail ministry demands Rs. 777 crores as lease from CONCOR; stock ends 15% lower.

•       Import ban on 101 defence items sends L&T to its highest levels in over 2 months.

•       Cipla continues a record-breaking run to be the top index gainer throughout the session.

•       The nifty contribution chart is as follows:

 

 

 

Trends:

•       Nifty breached its crucial resistance at 10240 levels on the closing basis.

•       The index saw a small bearish candle on the daily chart, with a large upper tick. The chart resembled a indecisive Gravestone Doji.

•       The support for index in shifting higher, but confidence in market is still missing. A breakout above 11350 levels in Nifty would gain turn the bias in the favours of the bull.

 

Option strategy for tomorrow:

•       The short-term trend of Nifty continues to be positive with volatile movement. 

•       Nifty is buy at its support 11240. If there is a gap up market can be rangebound before forming a trend.

•       If it opens flat or gapdown, there is more chance that market will go up.

•       Nifty’s expected range tomorrow can be 11150 and 11380

•       Upside resistance is at 11300 and 11350 levels

•       Downside support is at 11240 & 11180 levels

•       Maximum call OI of 21.03 lakh contracts was seen at 11,500 strike which will act as crucial resistance for August Series

•       Maximum put OI of 29.91 lakh contracts was seen at 11,000 strike which will act as crucial support for August Series

 

 

Stock Picks for the day-

 

•       HDFC has been in the oversold region for the last 5 trading days on Stochastics. Expect the stock to test 1,825 levels in the early hours of trade on Tuesday.

•       RIL showed some strong structure with strong volumes in the last one and a half hours of trade on Monday. Expect the stock to test 2,157 levels on Tuesday.

•       IRCTC closed in red on Monday at 1,323 levels, with the news of trains pushing to September end mails as well as locals the stock can test 1,290 levels

•       Motherson Sumi showed some strong buying and bullish candle formation on Monday. With the stock already 5% up on Monday. Expect the stock back to 103 levels on Tuesday.

 

 

Results on August 11

Bajaj Electricals, Bosch, Central Bank of India, Galaxy Surfactants, JMC Projects, Symphony, AIA Engineering, Motherson Sumi Systems

Source: moneycontrol

Analysts at work: