Global cues:
• World markets were hit by a media report on how several global banks moved large sums of allegedly illicit funds over nearly two decades. The rout in global banking stocks was led by HSBC, which tumbled to a 25-year low.
• Wall Street's main indexes hit their lowest in nearly seven weeks on Monday as concerns about fresh coronavirus-driven lockdowns and the inability of Congress to agree on more fiscal stimulus raised fears about another hit to the domestic economy.
• The Dow Jones Industrial Average was down 588.64 points at 27,068.78, the S&P 500 was down 59.80 points at 3,259.67
• All the major S&P indexes were down, with energy leading declines as oil prices slid on the possible return of Libyan production and rising coronavirus cases.
• A slide in HSBC and Standard Chartered set the FTSE 100 on course for its worst day in three months on Monday after reports the banks were among those that moved allegedly illicit funds over the past two decades, while travel stocks plummeted on fears of more coronavirus-related lockdowns.
• An index of travel and leisure stocks, already among the biggest decliners this year, tumbled 5.6%. The mid-cap FTSE 250 fell 3.1% to its lowest in nearly two months.
Indian markets:
• On September 16, The BSE Sensex fell 811.68 points or 2.09 percent to 38,034.14, while the Nifty50 plunged 254.50 points or 2.21 percent to 11,250.50
• FIIs were net Sellers of worth Rs 539.81 crore, and DIIs were net seller of worth Rs 517.95 crore, for September 21, 2020
• The correction was seen across sectors with Nifty Bank, Auto, FMCG, Metal and Pharma leading the charge which saw 3-5 percent fall. Txhe Nifty Midcap and Smallcap indices also corrected nearly 4 percent each.
• Investors on Dalal Street became poorer by over Rs 4 lakh crore on Monday due to heavy selling in index heavyweights amid a massive global selloff
• Shares of Route Mobile more than doubled on their debut on the bourses today, and rose to as high as Rs 735, up 110 per cent from its issue price of Rs 350 and closed at Rs 651.10
• Initial public offers (IPOs) of mutual funds transfer agency CAMS and chemical manufacturer Chemcon Speciality opened for subscription on Monday, while retail stock broker Angel Broking’s IPO is slated to hit the market on Tuesday.
• The country's largest lender State Bank of India, has raised Rs 7,000 crore by issuing Basel III compliant bonds. The allotment of bonds to the subscribers took place on the same date i.e. September 21, 2020
• Indian and Chinese military are still positioned in forward positions ready to block each other’s moves, which is keeping tensions at the border high.
• The nifty contribution chart for today was as follows:
Trends:
• Nifty opened flat on Monday, but failed to hold the 11,500 level and fell sharply in the second half of the session towards the 11,200 zone
• It ended lower for the third straight session on Monday, it formed a bearish candle on the daily chart.
• If we see markets weakening further, it could add more jitters. If the market were to weaken from here, a strong support will be at 10,800.
Option strategy for tomorrow:
• The Bank Nifty slumped 664.25 points or 3.02 percent to close at 21,366.80
• Banking stocks were battered heavily after a report prepared by Treasury Department’s Financial Crimes Enforcement Network (FinCEN) said almost all Indian banks were involved in a number of suspicious transactions between 2010 and 2017.
• For Tomorrow we can expect a technical bounce since it has seen a sharp fall yesterday. So one can buy a Call option for a target of 50 to 70 points with a stop loss of 30 points downside.
• Maximum call OI of 53.38 lakh contracts were seen at 11,500 strike which will act as crucial resistance for the week.
• Maximum put OI of 32.31 lakh contracts were seen at 11,000 strike which will act as crucial support for the week.
Stock picks of the day:
• M&M - Stock closed at 622.50 on Monday and closed 4.85% down. It closed just below its 30 day moving average expect the stock to slide to 611 levels on an intraday basis on Tuesday
• Hindalco - Stock closed at 167.15 on Monday forming a big bearish candle and the stock closed around 6.9% down. Expect the stock to slide to 163 levels on an intraday basis
• HDFC – Stock closed at 1708.15 levels on Monday with some selling pressure. It recently broke its lower level of the Bollinger band. Expect the stock to slide to 1,696 levels on Tuesday
• Axis Bank – Stock saw decent selling pressure on Monday and closed 4.5% down, some weak structure had developed in the stock over the last weak. Expect the stock to slide down to 417 levels on Tuesday
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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