Pre Market Report - 8th September 2020

Global cues:

•     Market activity Is likely to remain subdued as Overnight cues will be absent for tomorrow as the U.S. Markets are shut on account of Labor Day holiday.

•       Though, Nasdaq futures fell a further 1%.

•       European shares bounced on Monday, STOXX 600 index was 1% higher, with Frankfurt shares leading gains after rising 1.2%.

•       European shares were trading higher while Asian stocks declined on Friday.

 

Indian markets:

•       On September 7, The Sensex gained 60.05 points to close at 38,417.23 and the Nifty was up 21.10 points at 11,355.

•       FIIs were net sellers of worth Rs 6.93 crore, and DIIs were net seller of worth Rs 815.82 crore for September 7, 2020.

•       The Nifty FMCG and IT indices gained 0.57 percent each, while other sectoral indices closed flat with a negative bias.

•       Among stock-specific action, Vodafone Idea rose on fundraising plan and a revamp of its brand identity, while ITC cheered a top brass rejig. Tata Motors DVR jumped as promoter Tata Sons upped its holdings.

•       The share price of Vodafone Idea traded nearly 4 percent during the afternoon trade on Monday after it launched a unified brand "Vi", marking the completion of the merger between two telecom companies.

•       Manappuram Finance on Monday said it has raised Rs 100 crore by issuing bonds on a private placement basis. The tenure of the bonds is 2 year and 6 months. The date of allotment of bonds is September 7, 2020 and date of maturity is March 7, 2023.

•       Happiest Minds Technologies IPO: Retail demand ensures full subscription on Day 1. The Rs 702 crore initial public offer (IPO) of Bengaluru-based IT services provider Happiest Minds Technologies was subscribed by 117 percent so far. It received bids for around 2.8 crore equity shares as against the IPO size of over 2.32 crore shares.

•       The nifty contribution chart for today was as follows:

 

Trends:

•       Nifty ended the Monday's volatile session marginally higher; it formed a DragonFly Doji candle on the daily chart indicating that declines are being bought.

•       The Bearish Engulfing pattern on the weekly chart is also intact. Hence, any rising attempt from here could encounter selling pressure at the highs

•       Going ahead, the performance of global markets combined with development on India-China LAC issue will continue to dictate the market trend.

•       INFY - This stock has been trading in the range of 900 - 980 for the past 1 month. Might consolidate further in this range before a breakout takes place on the upper side. The fundamentals of this stock are pretty good. Good stock to hold in the long term.

 

•       SBI - Recently broke it's major resistance of 200 and touched a high of 230. Could't sustain at that high levels. Available at a very good valuation for an investor who's looking to hold for a time duration of atleast 3 years. Good upside potential unless the resistance of 200 is broken.

 

Option strategy for tomorrow:

•     Nifty is currently rangebound. Needs a strong breakout on upside or breakdown below to give a clear indication of trend.

•       Nifty is sell below 11280. But if Nifty opens flat, then there is more scope for it to make upward momentum, can buy a call option.

•       The Bank Nifty continued to underperform the Nifty, falling 66.50 points to 22,945

•       Nifty’s expected range tomorrow can be 11200 and 11450.

•       Maximum call OI of 19.83 lakh contracts were seen at 11,500 strike which will act as crucial resistance for the week.

•       Maximum put OI of 28.07 lakh contracts were seen at 11,000 strike which will act as crucial support for the week.

•       Given the current technical setup Traders should now maintain positions on both sides and prefer hedged bets.

 

 

Stock Picks:

•       HDFC BANK - Retesting Crucial Support level of 1100. Sell below the levels of 1100. Can go down to 1050 if support breaks and if it sustains these levels, it can bounce up to 1130.

•       Maruti - Managed to breakout after a short consolidation at 7150, and has successfully sustained. Expected to move north towards the 7500 zone before facing major resistance.

•       Manappuram Finance - Stock closed at 146 on Monday forming a black marubozu candle and the MACD and RSI have a sell signal on the stock. Expect the stock to face further selling pressure and slide to 140 levels.

 

Results on September 8 

CESC, Dishman Carbogen Amcis, Future Consumer, Jindal Stainless, Mafatlal Industries, Bal Pharma, Sharon Bio-Medicine, Simplex Projects, SML Isuzu, Spencer's Retail, Texmaco Rail & Engineering among 37 stocks will announce June quarter earnings. 

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

 

 

                                                                                                                                 Analysts at work: