Global cues:
• The S&P 500 and the Nasdaq edged higher on Tuesday, led by a bounce in shares of Amazon.com and Apple, while uncertainty over more U.S. fiscal stimulus kept trading in Dow constituents muted.
• The Dow Jones Industrial Average was down 11.07 points at 27,136.63, the S&P 500 was up 8.47 points at 3,289.53, and the Nasdaq Composite was up 28.53 points at 10,807.33.
• European stocks bounced on Tuesday after a sell-off in the previous session, as technology and healthcare stocks gained, but worries about new coronavirus restrictions in Britain and elsewhere kept travel stocks under pressure.
• The pan-European STOXX 600 index rose 0.8%, recovering from its worst fall in three months, with technology stocks that have outperformed this year, rising 1.6%.
Indian markets:
• On September 22, Sensex closed 300 points, or 0.79 percent, lower at 37,734.08 while Nifty ended at 11,153.65 with a loss of 97 points or 0.86 percent.
• FIIs were net Sellers of worth Rs 2,072.76 crore, and DIIs were net buyers of worth Rs 878.91 crore, for September 22, 2020
• All sectoral indices, except Nifty IT and Nifty Pharma, ended the day in the red. Nifty Media lost the most, down 2.7 percent followed by Nifty Realty and Nifty Auto, down 1.7 percent. Nifty Bank and Nifty Metal also shed around 1 percent for the day. Meanwhile, Nifty Pharma rose over 1 percent and Nifty IT added 0.9 percent
• Indian market was subdued following continued selling in other major markets across the globe due to fresh worries over another round of restrictions due to increase in COVID-19 cases, which could harm the already sluggish economic recovery.
• The initial public offer (IPO) of Computer Age Management Services (CAMS) got fully subscribed on the second day of the bidding process. The IPO is available for subscription till September 23. The price band has been fixed price band of Rs 1,229-1,230 per share.
• The Rs 600-crore initial public offering (IPO) of Angel Broking has been subscribed 26 percent so far on the first day of the bidding process Tuesday. The issue will close on September 24 while the price band has been fixed at Rs 305-Rs 306 per equity share.
• Shapoorji Pallonji (SP) Group said on Tuesday it is time to separate from Tata Group, and added it was crucial that an early resolution is reached to arrive at a fair and equitable solution, reflecting the value of the underlying tangible and intangible assets.- “The SP-Tata relationship spanning over 70 years was forged on mutual trust, good faith, and friendship. Today, it is with a heavy heart that the Mistry family believes that a separation of interests would best serve all stakeholders”
• The nifty contribution chart for today was as follows:
Trends:
• Nifty50 dropped for the fourth straight day on Tuesday and fell below the psychologically important 11,200 level.
• The index, which formed a Bearish Belt Hold-like candle on the daily chart.
• Just because that the Nifty has shed over 350-points in last two sessions, we can expect a kind of technical pullback which will find resistance at higher levels.
• One should avoid excessive exposure and look for stock-specific performances in the markets.
Option strategy for tomorrow:
• The levels of 11230 and 11260 will act as resistance points for tomorrow. The supports will come in at 11110 and 11060 levels.
• One can Buy call option at its support and put option at its resistance.
• Maximum call OI of 49.5 lakh contracts was seen at 11,500 strike which will act as crucial resistance for the week
• Maximum put OI of 37.15 lakh contracts was seen at 11,000 strike which will act as crucial support for the week.
Stock picks of the day:
• HDFC – Closed at a market price of 1674.85. The stock fell 1.95% through the day compared to BankNifty’s 1.07% fall and has seen a ~13% correction this month from its high of 1920. We recommend a buy call given the recent heavy fall, with first target at 1695 and second at 1715. Recommended stop loss is 1660.
• Tech Mahindra – Closed at a market price of 800.45. The stock has managed to stay above its support zone and clocks a healthy RSI of ~67. The stock is expected to move up to the 825 zone with stop loss below 790.
• Divis Laboratories – Closed at 3236.90. The stock ended 2.46% higher today after testing a low of 3042. There has been an increase in volume and is expected to move up given the successful support zone bounce-back. Target is 3290-3300 zone with stop loss below 3205.
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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