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.