Global cues:
• The Nasdaq tumbled on Tuesday as investors dumped high-flying technology stocks, while Tesla tracked its worst day in nearly six months after a surprise exclusion from the S&P 500.
• The Dow Jones Industrial Average was down 536.63 points, at 27,596.68, the S&P 500 was down 70.76 points, at 3,356.20
• All eleven major S&P sectors fell in early trading, with declines worsening after news on Friday that SoftBank made significant option purchases during the run-up in U.S. stocks.
• Financial and information technology stocks were among the biggest decliners.
• European shares fell on Tuesday, the pan-European STOXX 600 fell 0.4%, shortly after opening marginally higher, as technology stocks weighed the most with a 1.7% fall.
• Stocks declined on fears that the UK was in danger of leaving the European Union without a trade agreement, while technology firms tumbled as their US peers looked set to deepen a selloff from last week.
Indian markets:
• On September 8, The BSE Sensex was down 51.88 points at 38,365.35, while the Nifty50 fell 37.60 points to 11,317.40.
• After trading positive for most of the day, the benchmark indices slipped into the red towards the end. Indo-China Border tensions, dismal GDP Forecast by global agencies and selloff in European stocks impacted the market.
• FIIs were net sellers of worth Rs 1,056.52 crore, and DIIs were net buyers of worth 620.29 crore for September 8, 2020.
• Among sectoral indices, Nifty IT was the only gainer, up 1.2 per cent as investors rushed to defensives. Nifty Media was the biggest loser, down 3 per cent, followed by Nifty Metal that dipped 2.99 per cent. Nifty Realty and Nifty Pharma were other major losers.
• Motherson Sumi Sysytems Ltd on Tuesday said its board has raising ₹1,500 crore to ₹3,000 crore through issuance of non-convertible debentures to tide over the pandemic-induced crisis.
• 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 is seeing a heavy demand, subscribed 7.28 times
• The NIFTY contribution chart for today was as follows:
Trends:
•
As
Nifty ended below the 11,350 level, it formed a bearish candle on the daily
chart
•
Nifty
has been making small candles for a couple of sessions now, suggesting
consolidation
• Going ahead, the performance of global markets combined with development on India-China LAC issue will continue to dictate the market trend.
• Reliance: It has gone from a low of 880 in March to a high of 2200. For the past 1 month, it’s been trading in the range of 2000-2200. 2200 has acted as a major support due to its involvement in the AGR Case. The verdict is in their favour as they have already paid their dues. Currently trading at 2100, the stock has the potential to go 2200 levels in the near future.
• DIXON: This electronic manufacturing services company has given more than 200 % return since the lockdown was enforced in our country. Currently trading at 9600, this stock rose 7.67% today even when the broader markets were flat. The stock will continue to be in an uptrend in the near future.
Option strategy for tomorrow:
• Nifty is a sell if it opens gap up or flat. If Nifty opens with huge gapdown, then Nifty will be rangebound.
• The index continued its weakness for the fourth consecutive session and has been making lower highs - lower lows on the daily scale.
• Nifty’s expected range tomorrow can be 11200 and 11450.
• Maximum call OI of 20.16 lakh contracts were seen at 11,500 strike which will act as crucial resistance for the week
• Maximum put OI of 29.82 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 be cautious and prefer hedged bets.
Stock picks for the day:
• ICICI Bank - Stock closed at 375.70 on Tuesday forming a big bearish candle in the last one hour. The stock is currently overbought on Stochastics. Expect the stock to test 371 levels
• Bharti Airtel - Stock closed at 498.10 on Tuesday forming a bearish candle and it currently is just below its 30 day MA. Expect the stock to slide to 491 levels on an intraday basis
• RIL - Stock closed at 2,107 on Tuesday forming a bullish candle. Buy the stock at 2,092 levels which is the major support zone for the stock
• Tata Motors – Stock closed at 142 levels on Tuesday forming a evening star pattern. Stochastics show the stock in the overbought region. Expect the stock to slide to 139 levels
Results on September 9
Indiabulls Ventures, CESC Ventures, Emami Realty, Eveready Industries India, Lovable Lingerie, Shriram EPC, Texmaco Infrastructure among 45 stocks to announce quarterly 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
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