Pre Market Report - 24th September 2020

 Global cues:

·         The S&P 500 and the Nasdaq retreated on Wednesday as data showed domestic business activity nudged down in September, while a record high for Nike following a strong quarterly earnings report boosted the blue-chip Dow. 

 

·         The Dow Jones Industrial Average was up 70.47 points at 27,358.65. The S&P 500, however, was down 2.26 points, at 3,313.31, while the Nasdaq Composite was down 46.23 points, at 10,917.41.

 

·         Nike Inc surged 9.7% to a record high as its digital sales, especially in North America, helped offset a fall in sales at traditional brick-and-mortar stores.

 

·         Tesla Inc tumbled 7.5% after Chief Executive Officer Elon Musk failed to impress with his promise to cut electric vehicle costs at the much awaited "Battery Day" event on Tuesday.

 

·         A jump in Adidas following an upbeat forecast from U.S. rival Nike and better-than-expected euro zone manufacturing data on Wednesday helped European stocks extend a recovery from a steep sell-off. 

 

·         The pan-European STOXX 600 rose 1.3%, with Germany's DAX, London's FTSE 100 and France's CAC 40 gaining between 1.6% and 2.0%.

 

 

 Indian markets:

 

·         On September 23, The BSE Sensex was down 65.66 points at 37,668.42, while the Nifty50 slipped 21.80 points to 11,131.90.

 

·         FIIs were net Sellers of worth Rs 3,912.44 crore, and DIIs were net buyers of worth Rs 1,629.23 crore, for September 23, 2020

 

·         Sectorally, the action was seen in consumer durables, realty, energy, and banks while selling pressure was seen in telecom, power, utilities, healthcare and public sector.

 

·         Among stock-specific moves, Route Mobile stole the show as it jumped 20 per cent. The stock is up 136 percent from its issue price.

 

·         IPOs of Chemcon Speciality Chemicals and Computer Age Management Services (CAMS) were subscribed 135.43 times and 44.30 times, respectively, so far on the last day of the offer, while Angel Broking’s IPO was filled in 1.19 times on the second day of the offer

 

·         An initial public offering (IPO) by Likhitha Infrastructure, a Hyderabad-headquartered oil and gas pipeline infrastructure service provider, is set to hit the primary market on September 29. Shares of the company are proposed to be listed on both BSE and NSE. The public offer will close on October 1.
The price band for Likhitha Infrastructure IPO has been fixed at Rs 117-120, with a lot size of 125 shares.

 

·         The Waybeo Technology Solutions hit a milestone on Wednesday when telecom giant Bharti Airtel announced picking up 10 per cent stake in the company with focus on deep AI analytics for cloud telephony.

 

·         Mortgage lender Housing Development Finance Corporation Ltd (HDFC) on Wednesday said it will raise up to Rs 5,000 crore by issuing bonds on a private placement basis. The issue size for the secured redeemable Non-Convertible Debentures (NCDs) will be Rs 2,500 crore with an option to retain oversubscription of up to Rs 2,500 crore.

 

·         The nifty contribution chart for today was as follows:

 

Trends:

 

·         Nifty50 on Wednesday declined for the fifth trading session and formed a bearish candle with a long wick.

 

·         Unless Nifty50 registers a sustainable close above the near-term critical resistance zone of 11294 – 309 levels strong rally in the Nifty shall not be expected

 

·         In case if Nifty closes below 11k levels then traders should be ready for a bigger cut with initial target placed around 10800 levels.

 

 

Option strategy for tomorrow:

 

·         The levels of 11230 and 11260 will act as resistance points. The supports will come in at 11110 and 11060 levels.

·         Strategy remains same as yesterday, Buy call option at support and buy put option at resistance.

 

·         Maximum call OI of 45.42 lakh contracts was seen at 11,300 strike which will act as crucial resistance for the week

 

·         Maximum put OI of 44.95 lakh contracts was seen at 11,000 strike which will act as crucial support for the week.

 

 

 

Stock picks of the day:

•         UPL – Closed at a market price of 532.40. The daily chart has formed hanging candles and closed slightly above its previous high. The target would be advised at 545 and stop loss at 525.

•         BALKRISHNA INDS – Closed at a market price of 1348.80. After testing the support zone of 1320, there has been an increase in volume. Target is 1375 with stop loss at 1340.

•         CROMPTON – Closed at a market price of 272.05. The stock is expected to move towards the 285-290 zone and recommended stop loss at 260.

 

 

 

 

 

 

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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