Global cues:
• US stocks dropped on Thursday as an unexpected rise in weekly jobless claims compounded fears of a stalling economic recovery, against the backdrop of dimming hopes for more fiscal aid before the election.
• The Dow Jones Industrial Average was down 243.51 points, or 0.85%, at 28,270.49, the S&P 500 was down 34.60 points, or 0.99%, at 3,454.07. The Nasdaq Composite was down 166.55 points, or 1.42%, at 11,602.18.
• European shares hit two-week lows on Thursday, knocked by tougher curbs in London and Paris to fight a second wave of the COVID-19 pandemic, with no breakthrough in Brexit trade talks also a dampener.
• The pan-European STOXX 600 was down 2.1% to a near two-week low, with markets in London and Paris lower 2%-2.2% and Frankfurt and Milan 2.6%-2.7% weaker.
Indian markets:
• On October 15, The Sensex ended more than 1,000 points to end at 39,728 and the Nifty closed nearly 300 points lower at 11,680.
• Foreign institutional investors (FIIs) and domestic institutional investors (DIIs) net sold shares worth Rs 604.07 crore and Rs 808.29 crore on October 15, as per provisional data available on the NSE.
• All sectors were also in the red with Nifty Bank and Nifty Fin Services dragging the most, down over 3.5 percent and 3 percent, respectively. Meanwhile, Nifty IT also fell 2.8 percent and the pharma index shed 1.7 percent for the day. Nifty Auto and Nifty FMCG also lost over a percent each in trade today.
• 5 factors that could be weighing on markets: Weaker global cues, Profit Booking, Stiulus expectations fading, and Fresh Lockdown Globally.
• The NSE's India VIX index - which gauges the expectation of volatility in the near term - rose 9.14 per cent, its highest since September 25.
• The Supreme Court has asked the government to implement the decision to waive “interest on interest” or compound interest charged on loans of up to Rs 2 crore for the six-month moratorium period announced in the wake of the COVID-19 pandemic. These developments in the court are leaning favourably towards financiers and are positive for the sector.
• Lakshmi Vilas Bank's board approves Rights Issue worth up to Rs 500 crore.
• IT services firm Mindtree on Thursday reported a net profit of Rs 253.7 crore for the quarter ended September, a rise of 87.9 per cent from a year ago.
• The nifty contribution chart for today was as follows:
Trends:
• Nifty50 snapped a 10-day winning streak on Thursday and formed a large bearish candle on the daily chart that engulfed the past few candles, thus forming a Bearish Engulfing pattern. Such a pattern after a rally has negative implications
• 11,600 would be the next critical support in Nifty, in the next session, if Nifty slips below 11,661 levels, then the slide shall continue to 11500-11450 levels
• The index seems to have stepped into a consolidation
phase that can last for the next few sessions
Option strategy for today:
• If nifty opens flat, it may see selling pressure. So one can buy put option with a stoploss of 50 points.
• If Nifty opens with a gapup, then also we can sell. Can buy put option with target at yesterday’s closing.
• If market opens with gapdown, then can be rangebound before making showing a trend.
• The highest call OI of 24.02 lakh contracts was seen at 12,000 strike, which will act as crucial resistance in the October month.
• The highest put OI of 22.39 lakh contracts was seen at 11,500 strike, which will act as crucial support in the October month.
Stock Picks for the day:
• Kotak Mahindra bank is at psychological level of 1300. Can sell this stock below 1300 for a target of 1275 tomorrow.
• Lupin has broke its current trend tine, also at psychological level of 1000. Can sell below 1000 for a target of 975.
• Reliance had hit its support level of 2200 thrice now. If it breaks that level, can give good downward momentum of 30-40 points.
• Glenmark has broke its support level, can sell this stock at 470 level for a target of 460.
Results on October 16
HCL Technologies, Bajaj Consumer Care, Federal Bank, Tata Communications, Tinplate Company, and Phillips Carbon Black.
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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