Global cues:
• U.S. stock markets opened mostly lower on Thursday as the aggressive buying of options in tech stocks by retail traders over recent weeks continued to unwind.
• The Nasdaq Composite was down 3.2%, while the S&P 500, which also closed at a new record high on Wednesday, fell 1.7%. Dow jones which has less exposure to tech than the other two big boards fell 0.8%.
• The market showed little reaction to a mixed set of data from the labor market ahead of Friday's official government payrolls number.
• Japan's Nikkei share average hit a six-month high on Thursday and reached its highest level in three decades.
Indian markets:
• NIFTY closed flat after a narrow trading range on Thursday; NIFTY bank underperformed.
• FIIs were net buyers of worth Rs 7.72 Crore and DIIs were net buyers of worth Rs. 120.08 Crore.
• Except PSU bank, all sectoral indices close higher; media & metal top gainers.
• RIL along with ICICI, Kotak & HDFC dragged market while IT stocks (INFY, TCS) supported.
• Vodafone Idea surged 30% on reports of stake sale and fibre asset sale.
• Grasim sees a move of 7% on positive development in relation to Vodafone Idea.
• Autos continue to move higher on a sequential improvement in monthly sales.
• The Indian rupee ended weaker on Thursday posting the single-biggest session fall against the US dollar since May 4. Current price 73.47.
• Market breadth favours advances; advance-decline ratio at 4:3.
• The NIFTY contribution chart for today was as follows:
Trends:
• NIFTY snapped its two-day winning streak and closed a volatile session on a negative note amid a contraction in the services sector for the sixth consecutive month.
• The index formed a bearish candlestick pattern on the daily charts as closing was lower than opening levels.
• India VIX fell by 2.83% to 20.50 levels.
• Bank NIFTY negated the formation of higher lows after two trading sessions as supply pressure is visible at higher zones.
• M&M – This stock has gone from 250 to 650 in the past 5 months. That’s a staggering 160% return since the lockdown was announced in our country. Expect the stock to trace back to 600 levels where it'll take some support and from there it'll again try breaching resistance of 650.
• Bajaj Finance – The stimulus packages by the RBI for the NBFC stock, lifted Bajaj Finance from the 2000 levels to the 3500 levels. This stock has been a multi bagger for many people Pre Lockdown. Expect it to fall a bit from its current levels before trying to reach its major resistance of 4000.
Option strategy for tomorrow:
• NIFTY’s momentum will be negative tomorrow because of global cues.
• If NIFTY opens huge Gapdown, market will be rangebound.
• If NIFTY opens flat, one can short NIFTY.
• NIFTY’s expected range tomorrow can be 11250 and 11550.
Stock Picks:
• Reliance – Dow shed more than 808 points, NASDAQ 4.96%, and S&P 500 fell about 3.5%. expect this to have an effect on the Indian Markets. Reliance will come under a lot of pressure tomorrow morning. Go short at the current price of 2112.
• HDFC Bank – NIFTY will come under pressure due to bad global cues. The stock has been doing pretty well lately. Will come under a lot of pressure tomorrow morning.
Results on September 4
Jubilant Life Sciences, Cochin Malabar, Cochin Malabar Estates & Industries Ltd.
Source: moneycontrol
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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