Global cues:
• Wall Street ends higher as tech rally squashes virus fears, but S&P down for week
• Technology stocks again rode to Wall Street's rescue on Friday, lifting the main indexes more than 1%, but the Dow and the S&P 500 still posted their longest weekly losing streaks in a year as fears of a slowing economy sparked an almost month-long rout.
• The Dow Jones Industrial Average rose 358.52 points, or 1.34%, to 27,173.96. The S&P 500 gained 51.87 points, or 1.60%, to 3,298.46
• Technology mega-caps Apple Inc, Microsoft Corp and Amazon.com Inc led the way, followed by Nvidia Corp and Facebook Inc, rising at least 2.1%.
• Volatility has also shot up as investors look for clarity on whether Congress will approve more stimulus ahead of the Nov. 3 presidential election, which now appears unlikely.
Indian markets:
• The market snapped six-day losing streak and rebounded sharply to close above 11,000 on the Nifty with more than 2 percent gains on September 25, the first day of October series. The reports of likely stimulus package from government ahead of festive season lifted sentiment.
• The BSE Sensex surged 835.06 points or 2.28 percent to 37,388.66, driven by rally across sectors. The Nifty50 climbed 244.80 points or 2.27 percent to 11,050.30.
• Nifty formed bullish candle on the daily charts, but lost 4 percent for the week and witnessed bearish candle formation on the weekly scale.
• The Bank Nifty also rallied 525.50 points or 2.57 percent to close at 20,982.35 and formed bullish candle on the daily charts on September 25.
• Foreign institutional investors (FIIs) net sold shares worth Rs 2,080.21 crore, whereas domestic institutional investors (DIIs) net bought shares worth Rs 2,070.63 crore in the Indian equity market on September 25, as per provisional data available on the NSE.
• On Monday interest on interest case is heard in supreme court. Decision will come after 2 pm, bank Nifty can make volatile movement after that.
• Reliance Industries Ltd (RIL) received Rs 7,500 crore from US private equity firm Silver Lake Partners to pick up 1.75 per cent stake in its retail arm, Reliance Retail Ventures Ltd (RRVL)
• Accenture reported revenues of $10.8 billion, down 2 per cent year-on-year (YoY) and 1 per cent YoY in constant currency terms, but strong traction in the outsourcing business, strong order bookings, and encouraging management commentary were the key positives
• Quess Corp, India’s largest staffing company with assets of Rs 663cr posted one of its worst financial results in 2019-20 reporting a net loss of Rs 422cr on a topline of Rs 11,043 crore.
• September quarter earnings may witness improved earnings from companies across Healthcare, Consumer Staples, and Technology and the agrochemical sector
• The NIFTY contribution is as follows –
• Colgate Palmolive – Recent results show growth in Operating Profit with increase in operating margins (YoY). Charts signify strong Momentum and current price above short, medium and long-term moving averages. MACD crossed above signal line previous end of day MFs increased their shareholding last quarter.
• ICICI Prudential Life Insurance – The company has reported declining Net Cash Flow and has declining annual net profit for last 2 quarters. The charts signify Weak Momentum with Price below Short, Medium and Long-Term Averages.
Option strategy:
• For the upcoming week Nifty may trade between the range 10800 to 11500.
• So one can sell 10800 weekly put option and 11500 weekly call option, as part of weekly option strategy.
Stock picks of the day:
• Ashok Leyland – After reaching a high of 83.5 last week, the stock fell sharply to 67 due to the recent market correction and sell off by the FPIs. The stock rose 13.2% last friday to end the trading session at 76.3. Further upside movement can be expected from the stock to touch it's high in the short term.
• HDFC Bank – Stock closed at price of 1044. RSI and MACD have sell signal on the daily chart. Expect the selling pressure to continue at this price and expect the stock to trade near 1034 range.
• Aarti Industries – Stock closed at price of 1008. STOCHRSI has a overbought signal on the daily chart. RSI and MACD also have a sell signal on the stock. Expect the stock to fall from current price range and trade near 994 range.
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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