Thursday, 13 August 2020

Pre Market Report(14-08-2020)

 

Global cues:

       The S&P 500 and Nasdaq rose on Thursday, with Apple inching toward $2 trillion in market capitalization, as data showed jobless claims fell below one million last week for the first time since the start of the pandemic in United States.

       Trends on SGX Nifty indicate a negative opening for the index in India with a 19 point loss.

Indian markets:

       On Wednesday, the BSE Sensex closed 59 points lower at 38,310.49, while the Nifty50 ended with loss of 8 points at 11,300.45.

       FIIs were net buyers of worth Rs 416.28 Crore and DIIs were net seller of worth Rs. 763.54 Crore for August 13, 2020

       Mixed global cues and profit bookings at higher levels capped the upside.

       On the sectoral front, except bank and pharma other indices ended in the green

       Retail Inflation accelerates in July to 6.93% due to a sharp spike in food and vegetables prices, which limits the room for further monetary action.

       The Adjusted Gross Revenue case hearing will be on 14th August, it would keep the Telecom and Banking sector in focus.

       The nifty contribution chart for today was as follows:



 

Trends:

       Nifty50, erased gains in late morning deals and closed flat with a negative bias on August 13.

       Nifty closed below its opening levels and hence formed a bearish candle that resembled the Doji indecisive Formation - which suggest a struggle between the bulls and the bears.

       Follow-up buying was missing near 11,350 zones but at the same time, declines were being bought.

 

Option strategy for tomorrow:

       The short-term trend of Nifty is rangebound with buy on dips strategy

       It is advised to sell options of 11400 ce  and 11250 pe, instead of buying options

       Nifty’s expected range tomorrow can be 11200 to 11400

       Upside resistance is at 11340 and 11400 levels

       Downside support is at 11270 & 11210 levels

       Maximum call OI of 23.21 lakh contracts was seen at 11,500 strike which will act as crucial resistance for August Series

       Maximum put OI of 32.70 lakh contracts was seen at 11,000 strike which will act as crucial support for August Series

 

Stock picks for the day

       Hindalco closed at 183.55 on Thursday, the stock has been treading on the resistance level of the Bollinger band. Expect a breakout with the stock moving up to 186 levels

       RIL has been consolidating at 2120 levels for the last 3 trading days, expect the stock to move up to 2140 levels in the early hours of trade

       ITC closed in red on Thursday at 201.45 levels, there seemed to build up some weak structure, expect the stock to reach to 198 levels in the early hours of trade on Friday

       Jindal Steel showed some strong buying this entire week expect the stock to continue this bullish movement and move up to 216 levels

 

Results on August 14

Hindalco Industries, NTPC, Glenmark Pharmaceuticals, Berger Paints, MRF, Indian Bank, United Breweries, Voltas, Sun TV Network, Ramco Cements.

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 fixed returns. we are not 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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