Global cues:
• US stocks turned lower in volatile trading on Friday as worries about rising coronavirus cases and a patchy economic recovery dampened risk sentiment
• Technology-related stocks reversing early gains to extend their declines to a third day with Nasdaq declining 1.07%
• The Dow Jones Industrial Average lost 244.56 points, or 0.88%, and was trading near 27,657, while the S&P 500 is down by 37.54 points to about 3319.47, a loss of 1.12%.
• Tesla rose 5 percent as two analysts raised their price targets on the electric carmaker's shares ahead of its highly anticipated "Battery Day" event next week.
• The Stoxx Europe 50 lost 32 points, around 0.99%, standing at 3,283.69 and the major regional indexes, the German DAX, the French CAC 40, and U.K. FTSE 100 registered similar declines.
Indian markets:
• On September 18, Sensex closed 134 points, or 0.34 percent, lower at 38,845.82 while Nifty closed 11 points, or 0.10 percent, down at 11,504.95.
• The market lost momentum in last hour of trade amid mixed global cues on September 18 as bears turned strong due to selling pressure in banking & financials though hefty buying in pharma stocks capped losses to some extent.
• Foreign institutional investors (FIIs) net bought shares worth Rs 205.15 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 100.83 crore in the Indian equity market on September 18
• Call unwinding was seen at 11,300 strike, which shed 53,775 contracts, followed by 11,000 strike, which shed 14,475 contracts.
• Put unwinding was witnessed at 11,600 strike, which shed 70,800 contracts, followed by 12,000 strike which shed 44,625 contracts.
• Chemcon Speciality Chemicals 318-crore IPO will open on September 21 and close on September 23. Price band is fixed at Rs 338-340 per share.
• Computer Age Management Services (CAMS) Its 2,244-crore IPO will open on September 21 and close on September 23. Price band is fixed at Rs 1,229-1,230 per share.
• According to pivot charts, the key support levels for the Nifty is placed at 11,439.37, followed by 11,373.73. If the index moves up, the key resistance levels to watch out for are 11,577.37 and 11,649.73.
Trends:
For the upcoming week, interest on interest case will be heard on Thursday. So can expect Bank Nifty to make volatile movement.
Nifty has been flat for the last three week. Whereas, BankNifty has fallen very drastically.
For the upcoming week Nifty may trade between 11200 to 11800.
BEL - Touched a high of 118 but could not sustain at that levels. Retracted to the psychological support of 99-100 and reversed from there.Currently trading near the support of 104, the stock is expected to move to its recent high of 118 in the coming months.
HDFC - The stock has been trading in the range of 1720-1950 since the month of June. Currently trading near it's long time support of 1920, the stock will consolidate near the 1700 levels. The stock is expected to rebound from there and touch 1800-1850 in the near future.
Option strategy:
If Nifty opens flat tomorrow, wait for the price action before taking any trade, high chance that it will face selling pressure. One can short both Nifty & BankNifty if the first candle is red.
If Nifty Opens with huge gapdown, then one can buy call option for small gain.
If Nifty opens with gapup, It can be rangebound before making move upside or downside.
Option Strategy for the week will be to sell 11300 PE and 11800 CE.
Stock picks for the day:
• Hindalco -Stock closed at 179.50 on Friday and closed 2.08% up. It is currently trading below its 30 day moving average. Expect the stock to test 182 levels on an intraday basis
• Dr. Reddy’s -Stock closed at 5333.35 on Friday forming a big bullish candle the stock has been on an upward trend after the company and Russia's sovereign wealth fund, Russian Direct Investment Fund (RDIF), agreed to cooperate on clinical trials and distribution of Sputnik V,. Expect the stock to test 5791 levels
• HDFC –Stock closed at 1724 levels on Friday with some selling pressure. Stochastics show the stock to be underbought at current levels. Expect the stock to test 1750 levels on an intraday basis on Monday
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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