Global cues:
• US stocks bounced on Wednesday with the Nasdaq gaining 1.5%, the S&P 500 gaining 1.69%, at 3,388.28.
• This came as the rout in technology shares halted and investors shrugged off news that AstraZeneca had paused global trials of its experimental coronavirus vaccine.
• Tesla Inc's shares jumped 8.8% after shedding about a fifth of their value in the previous session, following its surprise exclusion from the S&P 500.
• Apple Inc, Salesforce.com Inc and Microsoft Corp, which have borne the brunt of the tech rout, were among the top boosts to the blue-chip Dow.
• European shares bounced back a bit on Wednesday after steep declines in the previous session. The pan-European STOXX 600 indices rose 0.8%.
•
The sentiment still remains fragile as
AstraZeneca suspended global trials of its COVID-19 vaccine.
Indian markets:
• On September 7, The BSE Sensex was down 171.43 points at 38,193.92, while the Nifty50 declined 39.40 points to 11,278.
• The selloff in the US tech stocks and a setback to one of the vaccine trials kept Dalal Street market participants on edge on Wednesday.
• Adding to this India-China border tensions, correction in Asian peers and likely delay in the COVID-19 vaccine have hit sentiment.
• FIIs were net sellers of worth Rs 959.09 crore, and DIIs were net seller of worth Rs 263.97 crore for September 7, 2020.
• Bank stocks suffered strong losses today, dragging their sectoral indices down. Nifty Bank, PSU Bank, Private Bank and Realty indices ended with losses.
• The government has raised Rs 770 crore from stake sale of ammunition and missile systems manufacturer Bharat Dynamics Ltd through an offer for sale, which concluded on Wednesday.
• RIL rallied 2.57 per cent to Rs 2,161.25 after reports that US private equity firm Silver Lake will invest Rs 7,500 crore in Reliance Retail for around 1.75 per cent stake.
• Drug maker AstraZeneca Pharma India, fell 3.34 percent after late-stage studies of the parent's Covid-19 vaccine candidate was put on temporary hold due to a serious adverse reaction in a participant in the UK.
• Happiest Minds Technologies IPO: Retail demand ensures full subscription on Day 1. The Rs 702 crore initial public offer (IPO) of Bengaluru-based IT services provider Happiest Minds Technologies was subscribed by 150 times on the third day.
• The nifty contribution chart for today was as follows:
Trends:
• Nifty50 tested its crucial support at 11,250 level on Wednesday and even breached the psychological mark of 11,200 before staging a recovery.
• The index closed above 11250 and ended up forming a small bullish candle on the daily chart.
• The bias still remains negative, but Thursday’s being the weekly expiry day, Nifty may see a short-covering bounce.
• Going ahead, Indian markets are expected to be in sync with global markets and react to the ongoing border tensions with China. There are currently no fresh triggers for the market and we can expect volatility.
• Tata Steel – This stock has gone from 250 to 440 since the lockdown was announced. That's a 76% return in the past 6 months. Faced resistance at 440-445 levels. Formed a Huge green candle today after retracing to 400 levels.
• Cipla – One of top performing stocks of the COVID period, this stock has gone from 360 to 800 in 5 months. It's been on a downfall after facing resistance at 800 levels. Will test its immediate support of 690-695 and could bounce back from those levels.
Option strategy for tomorrow:
• Market today will be neutral to positive.
• If Nifty opens flat or gap-down one can buy call option. If nifty opens with huge gap, wait for price action to take position.
• The Bank Nifty corrected for the fifth consecutive session, down 477.40 points at 22,267.
• Nifty’s expected range tomorrow can be 11200 and 11450.
• Maximum call OI of 22.74 lakh contracts were seen at 11,500 strike which will act as crucial resistance for the week.
• Maximum put OI of 28.15 lakh contracts were seen at 11,000 strike which will act as crucial support for the week.
Stock picks for the day:
JSW Steel – Stock closed at price of 286. STOCHRSI has a oversold signal on the daily chart and stock saw buying in last 3 hours of trade. Stock formed a white Marubozu on the daily chart. Expect the buying momentum to continue and expect the stock to reach 290
Repco Home Finance – Stock closed at the price of 181 on Wednesday. After rising for 40% in the last 20 days, the stock is facing downward pressure and the stock formed a black Marubozu on a 1-day chart and expect the stock to continue its downward trend and trade near the level of 175.
Motherson Sumi – After touching a high of 129, this stock is on the decline. We expect the decline to continue in the short term. CMP 110, SL 113 , Target 107
Kotak Mahindra Bank – Currently trading near it's long term support of 1300, this stock is expected to go up from current levels. CMP 1326 SL 1300 Target 1350
Results on September 8
Hindustan Aeronautics, Goa Carbon, Jammu & Kashmir Bank, Bafna Pharmaceuticals, Commercial Engineers & Body Builders, Datamatics Global Services, Dhunseri Tea & Industries, Hindustan Copper, Jay Bharat Maruti, Jaypee Infratech, Kellton Tech Solutions, Mirc Electronics, Nova Iron & Steel, Sintex Industries, SRG Housing Finance, Mandhana Retail Ventures, Visa Steel among 72 companies to announce quarterly earnings
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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