Global cues:
• Wall Street notched its best weekly performance since July with the S&P 500 up 0.9% on Friday and 3.8% higher for the week. The tech-heavy Nasdaq Composite rose 1.4%, taking its weekly gain to 4.6%.
• Oil prices on pace for a 10% weekly gain on supply outages and improving demand, while the dollar tumbles to a three-week low against a basket of its global peers.
• Markets are expecting a stimulus package in USA and closely monitoring health of Trump.
• In Europe, the region-wide Stoxx 600 index closed up 0.6%, marking a 2.1% weekly rise — its largest since August.
Indian markets:
• The Sensex ended 327 points higher at 40,509 while the Nifty rose 79 points to settle at 11,914. For the week, the indices ended over 4 percent higher.
• Indian shares ended higher on Friday led by gains in financials after the RBI kept interest rates unchanged at 4% in the face of high inflation.
• Post the policy, the banking and financial indices surged on liquidity boosting measures. The Nifty Bank surged 2.8% while the Nifty Fin Services jumped 1.8%.
• Nifty IT also added 0.6% for the day. However, Nifty Realty shed 1.6% and the pharma index was down 1.3%. Nifty Auto, Nifty FMCG and Nifty Metal ended the day in red.
• RBI announced that it will conduct on-tap TLTROs (Targeted Long-Term Repo Operations) of Rs 1 lakh crore for up to three years. This will be done at a floating rate linked to the repo rate and will be available until March 2021.
• Shares of Lakshmi Vilas Bank surged 16 percent on Friday after the lender announced that it had received an indicative non-binding offer from the Clix Group.
• Coming week, Infosys, Wipro & HCL tech are coming out with results. We can expect good correction in IT sector given their movement.
• HDFC bank is also coming up with its result coming week, it can be crucial for BankNifty.
• The nifty contribution chart for today was as follows:
Option strategy for tomorrow:
• Highest open Interest for Nifty is at 12500 CE. So, this will act as resistance for the week.
• Highest open interest for Nifty on put side is at 10500 PE which will act as support for the week.
• Option strategy for the week will be Short iron condor with Selling 12200 CE & 11700 PE. And buying 11550 PE & 12400 CE which will act as a hedge.
• Weekly range for Nifty will be 11600 to 12200.
Stock picks of the day:
• Wipro – Closed at a market price of 374. The stock touched a record high after closing with higher highs for three consecutive sessions. The company's board is considering a share buyback at a scheduled meeting on October 13 and the stock can be expected to move towards the 390-400 zone tomorrow.
• Biocon – Stock closed at price of 451.50 on Friday. Stock saw selling pressure on Friday and stock closed 3.76 % down. All the technicals indicate bullish sentiment and expect buying to continue at this price and trade near price range of 460
• PNB Housing – Stock closed at price of 374.90 on Friday. STOCH and MACD have buy signal on the daily chart. Stock formed a white Marubozu indicating the buying momentum to continue at this price and expect the stock to trade near price range of 385
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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