Pre- Market Report (29-10-2020)

Global cues:

•      Dow Jones  fell 3.43% or 940 points, its biggest one-day loss since July 31.

 

•      The selling in the broader market was led by technology as stalwarts come under the spotlight on Capitol Hill ahead of key earnings reports from Amazon, Facebook, and Google.

 

•      France and Germany announced new lockdown measures starting Friday and Monday, respectively, with bars and restaurants set to shut while schools will remain open, as both countries strive to curb a sharp rise in Covid-19 infections.

 

•      Global infections have topped 44 million, with more than 350,000 cases reported a day earlier.

 

Indian markets:

•      Indian shares ended around 1.5 percent lower on Wednesday following in selloff in the global markets. Nifty fell 160 points lower at 11,730. 

•      All sectors were also in the red for the day. Nifty Bank and Nifty Fin Services dragged the most, around 2 percent each. Meanwhile, Nifty IT, Nifty Metal and Nifty Pharma indices were down between 1 percent and 1.8 percent.

 

•      The Reserve Bank of India (RBI) on October 27 said the COVID-19 pandemic is certain to have a severe impact on the finances of states, especially their revenue collection abilities

 

•      Dr Reddy's Laboratories (DRL) reported a net profit of Rs 762.3 crore in the second quarter of fiscal 2021. Dr Reddy’s slips 3% despite reporting earnings better than estimates.

 

•      Indian online grocery startup BigBasket is in advanced talks to sell a majority stake for about USD 1 billion to salt-to-software conglomerate Tata Group

 

•       Lakshmi Vilas Bank's shares slip 5 percent lower to Rs 14.95 per share on the NSE after the Reserve Bank of India asked the Bank to reconsider the names proposed for the post of new MD & CEO

 

•      Shares of Castrol India gained over 8 percent after the company announced its September quarter results. The company's operating profits for the quarter rose 18 percent to Rs 266.70 crore on the back of higher sales and lower costs.

 

•      Maximum Call OI of 44.03 lakh contracts was seen at 12,000 strike, which will act as crucial resistance in the October month.

 

•      Maximum put OI OF 11,500, which holds 39.03 lakh contracts, and 11,700 strikes, which has accumulated 36.08 lakh contracts which will act as support for October month.

 

•      Hero MotoCorp's share price surged over 4 percent on Wednesday after the two-wheeler manufacturer said that it will sell and service Harley-Davidson motorcycles in India

 

•       FII’s bought shares worth Rs 3,514.89 crore,net sold shares worth Rs 1,570.8 crore, while DII’S net offloaded shares worth Rs 979.16 crore in the Indian equity market on October 27.

 

•      The nifty contribution chart for today was as follows:

 

 

Results on October 29:

 

Maruti Suzuki, BPCL, Bank of Baroda, Canara Bank, Havells India, Vodafone Idea, InterGlobe Aviation, Tata Chemicals, TVS Motor Company, AAVAS Financiers, Aegis Logistics, Apollo Pipes, Arvind, Astec Lifesciences, Bajaj Healthcare, Blue Dart Express, Cholamandalam Investment and Finance Company, Coromandel Engineering, Gateway Distriparks, Great Eastern Shipping, Himadri Speciality Chemical, JK Paper, Laurus Labs, Mastek, Mahindra Holidays, MRPL, PTC India Financial Services, Security and Intelligence Services, Shriram Transport Finance, Strides Pharma Science, Surya Roshni, Vaibhav Global, Welspun Corp, Welspun India and Zensar Technologies 

 

Stock Picks:

•      IIFL Finance - Stock closed at price of 77.20 on Wednesday. Stock formed a black marubozu on the daily chart. Stock saw selling pressure in the last three hour of trade. Expect the selling pressure to continue at this price and expect the stock to move lower from this level and test price range of 74.8.

•      HDFC Bank- Stock closed at price of 1210.30 on Wednesday. Stock is trading near the first support of 1208 on the daily chart. Stock has a sell signal as per 5 day and 10 day moving average. Due to weak global cues, stock is expected to move lower from this level and test price range of 1198.

•      Aarti Industries- Stock closed at price of 1007 on Wednesday. Stock is trading above the first support of 1005 on the daily chart. Due to weak global cues and STOCHRSI having an overbought signal, stock is expected to move lower from this level and test price range of 990.

 

Pre Market Report (28-10-2020)

Global cues: 

•      The Dow slipped Tuesday, led by a slump industrial heavyweights like Caterpillar and 3M following quarterly results and renewed concerns about the impact of a surge in Covid-19 infections on the economy.

•      Fears over the pace of the economic recovery were exacerbated by signs the strength of the consumer is beginning to wane at a time when hopes of pre-election stimulus suffered a blow. 

•       Microsoft  up more 1% ahead of its quarterly results after the closing bell. Amazon.com Facebook) and Alphabet) are also expected to report later this week.

•      Sales of new U.S. single-family homes unexpectedly fell in September after four straight monthly increases, but the housing market remains supported by record low mortgage rates and demand for more space as the COVID-19 pandemic drags on.

 Indian markets: 

•      Indian Indian indices ended nearly a percent higher on Tuesday led by financials, pharma and FMCG stocks. For the day Nifty rose 121 points to settle at 11,889. 

•      Kotak Bank jumped 11 percent post its September quarter earnings lifting Nifty Bank index to around 3 percent. 

•      Broader markets were also in the green with Nifty Midcap and Nifty Smallcap indices up 1.3 percent and 0.3 percent, respectively. Kotak Bank, Nestle, Asian Paints, Shree Cement, and Bajaj Finance were the top gainers on the Nifty50 index. 

•      Festive season drives strong car sales but two-wheelers are lagging.  The Navratri festive season has seen car sales do better than last year – about 25-30 percent more -- though the same cannot be said about two-wheelers.  

•      Ceat company has reported a net profit of Rs 182 crore in as against Rs 43.6 crore, YoY. Revenue increased 17 percent to Rs 1,978.5 crore from Rs 1,691.6 crore, YoY. 

•      MSCI has announced that it is going to consider changes in the foreign ownership limits in the MSCI global indices for Indian stocks. This will be a big positive for India as its weightage will go up. Nestle, Colgate, Britannia, Shree Cement, Asian Paints, IGL, L&T, Petronet LNG and few of the PSU stocks are some of the beneficiaries where the weightage will go up because of the sectoral caps. 

•      It is speculated that Tata Motors company has recorded 100 percent YoY growth in car bookings during Navratri. Tata Motors witnessed 90 percent YoY growth in PV retails during Navratri. 

•      Maximum Call OI of 44.03 lakh contracts was seen at 12,000 strike, which will act as crucial resistance in the October month. 

•      Maximum put OI OF 11,500, which holds 39.03 lakh contracts, and 11,700 strikes, which has accumulated 36.08 lakh contracts which will act as support for October month. 

•      Government has appointed merchant bankers for a period of three years for disinvestment of stake in IRCTC through an offer for sale. 

•       FII’s bought shares worth Rs 3,514.89 crore,net sold shares worth Rs 1,570.8 crore, while DII’S net offloaded shares worth Rs 979.16 crore in the Indian equity market on October 27. 

•      The nifty contribution chart for today was as follows: 

 

Results on October 28:

 Small Finance Bank, Balaji Amines, Blue Star, Can Fin Homes, Carborundum Universal, CG Power and Industrial Solutions, Cummins India, Firstsource Solutions, GSK Pharma, Heritage Foods, HSIL, IIFL Wealth Management, ICICI Securities, Marico, Max India, MCX, MOIL, Navin Fluorine International, Piramal Enterprises, PI Industries, PNB Housing Finance, Radico Khaitan, RBL Bank. 

Stock Picks

·         Larsen & Toubro Infotech- Stock closed at price of 2908 on Tuesday. Stock formed a black marubozu on the daily chart. Stock saw massive buying in the last one hour of trade. Expect the buying momentum to continue at this price and expect the stock to move higher from this level and test price range of 2949.

·         ITC- Stock closed at price of 167.05 on Tuesday. Stock is trading below the first support of 167.34 on the daily chart. RSI and MACD have a sell signal on the stock. Expect the stock to move lower from this level and test price range of 165.

·         Amara Raja- Stock closed at price of 786 on Tuesday. Stock formed a white marubozu on the daily chart. RSI and MACD have a buy signal on the stock. Expect the stock to move higher from this level and test price range of 800.

 

Pre-Market Report (27-10-2020)

 Global cues:

•      The Dow fell sharply Monday, paced by a rout in value stocks on fears the recent spike in Covid-19 infections could weigh on the economic recovery amid fading hopes for U.S. stimulus before the election.

•      Financials gave up some of their gains from last week as banking stocks were abandoned after Treasury yields reversed sharply, with United States 10-Year down 5%

•      Facebook, meanwhile, said it would launch a game streaming service to rival Google’s cloud gaming service Stadia.

•      Sales of new U.S. single-family homes unexpectedly fell in September after four straight monthly increases, but the housing market remains supported by record-low mortgage rates and demand for more space as the COVID-19 pandemic drags on.

Indian markets:

•      Indian equity market declined more than one percent on Monday dragged by heavy selling across the board amid weak global cues. The benchmark Nifty fell 162.60 points or 1.36 percent to settle at 11,767.75.

•      RIL fell 4 percent after a Singapore arbitration panel put on hold Future Group's $3.38 billion asset sale to Reliance Industries. The stock price declined as much as 4.5 percent to an intraday low of Rs 2,018.45.

•      Heavy selling was witnessed across all the key sectors with metal stocks declining the most.

•      IndusInd Bank's share price surged up to 4 percent on Monday after reports said that Kotak Mahindra Bank is in talks to acquire the private lender.

•      The Special CBI Court in New Delhi today sentenced former Union Minister Dilip Ray to three-year imprisonment in a coal scam case related to the alleged inconsistencies in the allocation of a Jharkhand coal block in 1999.

•      Yes Bank reported better than expected earnings for the second quarter of fiscal 2021 on account of improvement in net interest margins (NIMs) and reduction in operating expenses.

•      Oil prices fell on Monday, extending last week’s losses, as a jump in COVID-19 infections in the United States and Europe raised alarms over crude demand, while the prospect of increased supply also hurt sentiment.

•      The Nifty Metal and Auto corrected the most, down 3.5 percent and 3.2 percent respectively, while Bank, IT and Pharma were down 1-1.65 percent

•      Government has appointed merchant bankers for a period of three years for disinvestment of stake in IRCTC through an offer for sale.

•       FII’s net sold shares worth Rs 119.42 crore, while DII’S net offloaded shares worth Rs 979.16 crore in the Indian equity market on October 26.

•      The nifty contribution chart for today was as follows:

 Results on October 23

Bharti Airtel, Tata Motors, Amara Raja Batteries, Castrol India, Ceat, ICICI Prudential Life Insurance Company, JM Financial, Man Industries, Mangalam Organics, Nippon Life India Asset Management, Sanofi India, SKF India, Suven Life Sciences and VST Industries.

 

Pre Market Report - 26th October 2020

Global cues:

•      The ongoing debate over whether the White House, the Republicans and the Democrats can finally reach an agreement on another coronavirus aid package will remain a key driver for markets in the coming week.

•      With almost 170 companies set to report investors will plough through the busiest week of earnings season so far.

•      With just over a week left to go to the Nov. 3 U.S. presidential election market participants will be closely monitoring the durability of the Biden trade.

•      The euro zone is to release third quarter growth figures on Friday with a strong bounce back expected in the wake of widespread lockdowns.

 

 

Indian markets:

•      The Indian market ended the day in red on Friday but posted sixth straight weekly gains.

•      Except IT, all sectors ended in the red, with Nifty Metal posting the most amount of losses, down 2.06 percent.

•      HCL Technologies, Reliance Industries, Tech Mahindra, Sun Pharma and IndusInd Bank were the Nifty50 top gainers while Zee Entertainment, Hindalco, Axis Bank, SBI and GAIL remained the index top losers. 

•      Goldman Sachs India has bought an additional 0.92 percent stake or 4,81,433 equity shares in Rossari Biotech at Rs 692.17 apiece.

•      The share price of PNB Housing Finance hit upper circuit for the second consecutive session, rising 5 percent on Friday after the NBFC reported stable earnings in the June quarter.

•      JK Mindspace Business Parks REIT IPO will open for subscription on July 27 and will close on July 29. Mindspace REIT is the second REIT IPO after Embassy Office Parks REIT. The latter company was the country's first REIT to launch Rs 4,750 crore IPO in March 2019.

•      Biotechnology major Biocon shares fell 2.5 percent after it reported a 26.30 percent decline in its consolidated net profit at Rs 167.8 crore Q1 mainly on account of higher R&D spend and lower profitability in the Research Services segment.

•      Private sector lender Yes Bank has reported profit at Rs 129.4 crore for September ended quarter 2020, against loss of Rs 600 crore in year-ago period.

•      Reserve Bank of India (RBI) Governor Shaktikanta Das has tested positive for COVID-19, he informed on Twitter on October 25. Interesting to see how markets will react to this news, expecially Bank Nifty.

•      The nifty contribution chart for today was as follows:

 

 

Option strategy for tomorrow:

•      For the upcoming week market may trade between 11500 to 12200. After seeing a consolidation for few weeks now its time for market to make a  up move or down move.

•      For the upcoming week strategy will be Short strangle with selling 11,500 weekly put option and 12,200 Call option.

•      Maximum Call open interest of 45.84 lakh contracts was seen at 12,500 strike, which will act as crucial resistance in the October series.

•      Maximum Put open interest of 29.85 lakh contracts was seen at 11,500 strike, which will act as crucial support in the October series.

 

 

Stock picks of the day:

•      Edelweiss Financial Services Ltd-Stock closed at price of 57.5 on Friday. Stock formed a white marubozuon the daily chart. Stock also moved above 5 day moving average range. Expect the stock to move up from this level and test price range of 59.

•      Oberoi Realty-Stock closed at price of 455 on Friday. Stock formed a black marubozuon the daily chart on Friday. RSI and MACD have a buy signal on the stock. Expect the stock to move higher from this level and test price range of 463.

•      DCB Bank-Stock closed at price of 80.40 on Friday. STOCHRSI has a overbought signal and MACD has sell signal on the daily chart. Expect selling pressure to continue at this price and expect the stock to trade near price range of 78

 

 

Results on October 23

Kotak Mahindra Bank, SBI Life Insurance Company, Mahindra & Mahindra Financial Services, Angel Broking, Finolex Industries, Genus Paper & Boards, GHCL, Hindustan Media Ventures, Alicon Castalloy, Lasa Supergenerics, Lakshmi Machine Works, Max Ventures and Industries, Swaraj Engines, Torrent Pharmaceuticals and Zim Laboratories

.

 

 

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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