Global cues:
• Wall Street's main indexes fell on Tuesday after a four-day winning streak as a pause in Johnson & Johnson's COVID-19 vaccine trials spurred concerns about a full economic rebound from the coronavirus-led downturn.
• The Dow Jones Industrial Average was down 109.40 points, at 28,728.12, the S&P 500 was down 12.27 points, at 3,521.95, and the Nasdaq Composite was down 30.51 points, at 11,845.75.
• European shares retreated from five-week highs on Tuesday as Johnson & Johnson's move to pause its COVID-19 clinical trials raised doubts about the timeline of a vaccine, while Airbus slipped after JPMorgan downgraded its rating on the stock.
• The pan-European STOXX 600 snapped a three-day winning streak to fall 0.3%, led by travel and leisure, banking and insurance stocks.
Indian markets:
• On October 13, The Sensex rose 31.71 points to close at 40,625.51 and the Nifty gained 3.50 points at 11,934.50
• Foreign institutional investors (FIIs) net bought shares worth Rs 832.14 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 1,674.46 crore in the Indian equity market on October 13, as per provisional data available on the NSE.
• Among sectoral indices, pharma and banking index settled over 1 percent lower while Nifty IT remained the only one to trade over a percent (+1.31 percent).
• Nifty Bank ended 1% lower ahead of interest waiver case hearing on 14th October, 2020.
• Shares of Wipro declined nearly 0.50 per cent ahead of its financial results for the quarter ended September 30. After market hours, the company reported 3.40 per cent year-on-year fall in consolidated net profit at Rs 2,465.70 crore. It also approved a proposal to buyback of up to Rs 9,500 crore worth of shares to reward stakeholders. Wipro will repurchase 23.75 crore shares at Rs 400 per share.
• Shares of RIL advanced nearly 2 per cent after the company’s telecom arm Reliance Jio became the first mobile service provider to cross the 40 crore customers mark in India with a net addition of over 35 lakh subscribers in July.
• Financial services major Bajaj Finserv has applied for a license for mutual fund business with the markets regulator The Securities and Exchange Board of India
• Ahmedabad headquartered-Torrent Group aims to hit the capital market with the initial public offer of its gas utility business, Torrent Gas, by 2023-24,
• The nifty contribution chart for today was as follows:
Trends:
• Nifty ended Tuesday's trading session on a flat note, it formed a Doji candle on the daily chart.
• Normally, a formation of Doji after a reasonable up move or down move could be considered as a warning signal for a trend reversal. Having formed this pattern beside the last negative candle could mean less predictive value for this Doji pattern.
• This was the second consecutive day when the index formed the indecisive candle around the 12,000 mark.
Option strategy for tomorrow:
• Markets looks indecisive right now. No clear-cut Naked option strategy might work on daily basis.
• The Iron condor weekly strategy is still intact.
• Maximum Call OI of 23.56 lakh contracts was seen at 12,500 strike, which will act as crucial resistance in the October Month.
• Maximum Put OI of 23.25 lakh contracts was seen at 11,500 strike, which will act as crucial support in the October Month.
• Overall, the market is showing distinct signs of fatigue at current levels. The zone of 11,950-12,000 is a potential resistance zone, as indicated by the weekly options data.
Stock picks for the day:
Ashok Leyland – Currently trading at 73.9, the stock is facing resistance at the 20-day moving average. The RSI shows consolidation is possible in the near run. Once the 20-day moving average is breached, this stock has the potential to reach 80 in the near term. TP: 76, SL 72.
DCB Bank – Stock closed at price of 75.40 on Tuesday. RSI and MACD have sell signal on the daily chart. Stock formed a black marubozu indicating the selling pressure to continue at this price and expect the stock to trade near price range of 72
SBI Card – Stock closed at a market price of 856.10. Successfully cleared the major resistance at 850 with an increase in volume over the last 5-day's average. RSI indicator shows 60 and the stock can be expected to move towards the 865 with stop loss at 850.
Results on October 14
Infosys, Aditya Birla Money, Tata Elxsi, Tata Steel BSL, Titagarh Wagons, CHD Chemicals, Den Networks, Goa Carbon, International Travel House, JTL Infra, Kilburn Chemicals, Modern Steels and Reliance Industrial Infrastructure are among the 16 companies that will announce their quarterly earnings on October 14.
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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