Pre Market Report - 14th September 2020

 

Global cues:

 

•       Stocks closed up modestly higher Friday, but The Nasdaq Composite booked its sharpest weekly loss since March 20, during the height of the coronavirus pandemic selling.

•       The S&P 500 tacked on 1.78 points, to close at 3,340.97.

•       Apple dropped 1.3% and Amazon fell by 1.9%. Facebook, Alphabet and Microsoft were all down.

•       With the Dow and S&P500 closing positive on Friday, we expect Nifty to see a stable start to the coming week.

•       European markets closed slightly higher on Friday as investors monitored tense negotiations between the U.K. and the European Union.

•       On Friday, Britain announced it had secured its first major trade deal post-Brexit, agreeing in principle to a free trade deal with Japan. The tentative agreement, which will require the approval of both the U.K. and Japanese parliaments, is scheduled to come into the force at the end of the year.

 

Indian markets:

 

•       On September 11, The Sensex gained 14.23 points to close at 38,854.55, while the Nifty50 rose 15.20 points to 11,464.50

•       FIIs were net buyers of worth Rs 1175.81 crore, and DIIs were net seller of worth Rs 724.31 crore, for September 11, 2020.

•       Nifty IT was the top gainer among sectoral indices, up 1.29 per cent, closely followed by Nifty Realty that climbed 1.27 per cent. Nifty Metal and Nifty FMCG also registered some gains. Nifty Media was the biggest loser, down 0.88 per cent. Nifty Private Bank and Nifty Financial Service also closed in the red.

•       Shares of Videocon hit upper circuit of 5 per cent after a UK-based family office made a Rs 2,200 crore offer to Videocon’s lenders for a takeover of the company as a going concern,

•       Route Mobile’s Rs 600 crore IPO oversubscribed by nearly 73 times on Day 3 of the bidding. The IPO, which is being sold at Rs 345-Rs 350 per share.

•       Going ahead, WPI and CPI inflation data for august, India China border clash, COVID-19 cases, SEBI guidelines to revise fund allocation for mutual funds, US Fed Interest rates discussion and global markets will add volatility to the Indian stock markets.

•       The nifty contribution chart for today was as follows:

 

 

 

Trends:

•       Nifty on Friday was placed a notch above the double top resistance point at 11,430 level, It closed 1.15% higher.

•       With a closing above this level, the index has attempted to take out this level again. While this attempt remains in force, it would be crucially important for the index to keep its head above the 11,430 level as any slip below 11,400 level would mean a failure to take out the double top resistance and slip below that point.

•       The market turned strong after five days of consolidation and correction and formed a hammer candlestick which is viewed as a bullish reversal candle stick.

•       One should remain very cautious if the index falls below 11400 levels. The focus should shift to defensives like IT, pharma and consumption stocks for a safer approach to the market.

 

 Option strategy for tomorrow:

•       Markets are expected to continue to remain in Consolidation amid lack of event with bull bias.

•       The Bank Nifty also ended moderately higher on September 11 with 13.80 points gains at 22,480.

•       Strategy for the week in Nifty would be Sell 11800 CE and Sell 11300 PE.

•       Nifty may trade with Negative Bias for the week.

•       Bank Nifty is looking weak, with the intrest on intrest case postponed.

 

 

 Stock picks of the day:

•       Granules – Stock closed at the price of 344 on Friday. Stock saw net selling throught out the day and the stock formed a long black candle on the daily chart indicating downward pressure. Expect the stock trade near the level of 332.

•       Manappuram Finance – Stock closed at price of 157. MACD and RSI has a buy signal on the daily chart and stock saw buying in last 1 hour of trade on Friday. Expect the buying momentum to continue at this price and expect the stock to trade near 161 range.

•       SBILIFE – Closed at a price of 865 last week. Daily chart signifies start of positive trend after major consolidation around 840 zone. MACD also verifies direction reversal, expect the stock to reach 890-900 zone before facing major resistance.

•       Colgate-Palmolive – After a bearish trend, the stock has formed three consecutive higher highs with significant uprise in volumes. The stock closed at a price of 1418 on Friday, and is expected continue its bullish trend, stop loss can be maintained at 1400.

 

 

 

Results on September 14

Apollo Hospitals Enterprise, Future Retail, HUDCO, PVR, Anant Raj, Ansal Properties, Asian Oilfield Services, Astra Microwave Products, AXISCADES Engineering, Balaji Telefilms, Bharat Road Network, GATI, HPL Electric & Power, IFCI, IVRCL, ITI, JB Chemicals, Jaypee Infratech, Jump Networks, Kwality, MBL Infrastructures, MMTC, NBCC (India), PC Jeweller, Raymond, SAIL, Skipper, SREI Infrastructure Finance and Take Solutions are among 443 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

 

 

                                                                                                                                 Analysts at work: