Global cues:
• The Nasdaq led gains on Wall Street on Thursday as investors returned to the perceived safety of technology-related stocks with a surprise rise in weekly jobless claims signalling a slowdown in economic growth.
• Seven of the 11 major S&P indexes were trading higher, with information technology leading gainers.
• The Dow Jones Industrial Average was up 0.08%, the S&P 500 was up or 0.31% and the Nasdaq Composite was up 0.79%.
• A sell-off in global risk assets drove European equities to near three-month lows on Thursday, as the absence of fresh stimulus for the U.S. economy and a second wave of coronavirus cases raised fears of a slowing global recovery.
• The pan-European STOXX 600 index fell 0.8%, recovering slightly after hitting its lowest level since June 26, while bourses in Frankfurt, London and Paris were down between 0.3% and 0.6%.
Indian markets:
• On September 24, The BSE Sensex plunged 1,114.82 points at 36,553.60, while the Nifty50 closed the expiry day for September derivative contracts at 10,805.50, down 326.40 points.
• FIIs were net Sellers of worth Rs 1,885.69 crore, and DIIs were net seller of worth Rs 188.64 crore, for September 24, 2020.
• All sectoral indices closed in the red with Bank, Auto, IT, Metal and Pharma falling in the range of 3-4 percent, while the Nifty Midcap and Smallcap indices declined over 2.5 percent each.
• Investors lost over Rs 4 lakh crore today as the market capitalisation of all BSE-listed shares fell to Rs 148.80 lakh crore as compared to Rs 152.71 lakh crore on Wednesday.
• The 5 factors that fuelled the sell-off in the market were weaker global cues, Uncertainty over economic recovery, Surge in COVID cases, F&O expiry and technical factors.
• Among stock specific action, TCS settled 5.48% lower in today's trade as some segment of the market believe that Tata Sons may sell its stake TCS to raise Rs 1.8 lakh crore to buy out Mistry's stake in Tata Sons.
• State-owned warship maker Mazagon Dock Shipbuilders is set to launch its initial public offering (IPO) September 29. The issue will close on October 1. The price band has been set at Rs 135-145. The company is looking to raise up to Rs 444 crore from the public.
• The Rs 600-crore initial public offer of Angel Broking has been subscribed 1.76 times so far on September 24, the final day of bidding, led by strong demand from retail investors. The issue has received bids for 2.43 crore equity shares against an offer size of 1.37 crore equity shares
• Route
Mobile, which made its debut on Monday, jumped another 10 per cent to Rs
908.10, adding to Wednesday’s 20 per cent gains. The stock is up 159.5 per cent
from its issue price of Rs 350.
• The nifty contribution chart for today was as follows:
Trends:
• The market corrected for the sixth consecutive session on September 24 with the Nifty falling well below the psychological 11,000 mark amid uncertainty over economic recovery and rising COVID-19 infections.
• India VIX, the measure of volatility in the market, advanced 12 per cent to 24-level, reflecting widespread fear on Dalal Street.
• It is possible that we may see more corrections. Scotland and the UK have said they are contemplating a lockdown. Fears that more economies may close down is creating more nervousness in the market. The revelations on global bank’s transactions also weighed heavily. All this is collectively bothering the market, which is on the lookout for reasons to correct. Market were already trading at very high valuations.
• Nifty at 10,800 is a good support level, which could lead to recovery in the market. But if the index sees further slide, it would surely give jitters to small investors.
• The short-term trend of Nifty has turned sharply down and there is a possibility of more weakness in the short run.
Option strategy for tomorrow:
• If Nifty opens with gapdown, then profit booking can kick in so, one can buy Call option for 50 to 80 point profit.
• If Nifty opens flat or with gapup, It can see further selling pressure, so one can buy put option with a stoploss.
• Maximum call OI of 51.41 lakh contracts was seen at 11,000 strike which will act as crucial resistance for the week.
• Maximum put OI of 43.43 lakh contracts was seen at 10,800 strike which will act as crucial support for the week.
Stock picks of the day:
• SBI - Stock closed at 176.35 on Thursday and closed 4.05% down. The stock tested the lower band of the Bollinger band. Expect the stock to continue sliding downwards and test 174 levels on intraday basis
• Bharti Airtel - Stock closed at 419.30 on Thursday well below its 30 day moving average. The stock opened gap down on Thursday with selling pressure all through the day. Expect the stock to test 414 levels on an intraday basis on Friday
• Axis Bank – Stock saw decent selling pressure on Thursday and closed 4.2% down, some weak structure had developed in the stock over the last weak. Expect the stock to slide down to 398 levels on Friday
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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