Global cues:
• Wall Street's main indexes jumped on Monday, recovering from a sharp fall in the previous session as hints President Donald Trump could return to the White House and hopes of a new fiscal stimulus bill lifted sentiment.
• The Dow Jones Industrial Average was up 0.92%, the S&P 500 was up 1.01%, and the Nasdaq Composite was up 1.38%.
• European stocks gained on Monday, lifted by dealmaking activity and an upbeat global mood following positive updates of U.S. President Donald Trump's health.
• The pan-European STOXX 600 index was up 0.6%, adding to last week's near-2% gain. Sectors considered more economically sensitive such as oil and gas, travel and leisure, banks, and automakers climbed.
Indian markets:
• On October 5, The BSE Sensex was up 276.65 points to close at 38,973.70, while the Nifty50 climbed 86.40 points to 11,503.40
• Foreign institutional investors (FIIs) net bought shares worth Rs 236.71 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 471.56 crore in the Indian equity market on October 5
• Among the sectors, IT stocks not only drove the markets up today, but also helped in maintaining the upward momentum of the indices. Meanwhile, banking stocks witnessed some intraday selling after a strong opening. The market was broadly positive with 29 of the Nifty50 stocks ending the day with gains.
• Among the stocks IT major Tata Consultancy Services (TCS) became the second domestic company after Reliance Industries (RIL) to attain a market valuation of more than Rs 10 lakh crore. The share price of the company advanced 7.30 per cent to Rs 2,706.85 ahead of its board meeting on October 7 to consider a share buyback proposal.
• Shares of Angel Broking made a weak debut on the bourses. The scrip closed nearly 10 per cent down at Rs 275.85 on the BSE against the issue price of Rs 306 apiece. Likewise, it settled 10 per cent lower at Rs 274.25.
• The nifty contribution chart for today was as follows:
Trends:
• Nifty ended higher for the third consecutive session on Monday, it formed a Shooting Star-like candle on the daily chart, which has a bearish implication.
• The index needs to hold above 11,450 level to keep the positive momentum going
• The overall structure of the index remains yet cautious approach should be followed and preference should be given to index majors.
• Dixon: Dixon Technologies (India) is primarily engaged in the manufacturing of electronics as its core business activity.This stock is gone from 3013 (during the lockdown) to 10289 in a period of 5.5 months. Having faced resistance at higher values, the stock retracted to 8900-9000 levels.Currently the stock is expected to consolidate in this 8900-9000 levels beyond which there is an upside to it's recent highs of 10200-10300 levels.
• L&T: Larsen & Toubro is a major technology, engineering, construction, manufacturing and financial services conglomerate, with global operations. This stock had gone from 750 to 1500 levels from 2016 to 2019. Corona haulted major operations for L&T and that caused the stock to fall back to 670 levels. The stock has been trading in the 800-1000 level since then.Currently trading near the support of 900, this stock has the potential to give good returns over the long term.
Option strategy for tomorrow:
• Market sentiment will slightly be on the sellside.
• If market opens flat or with a small Gapdown, one can sell Nifty put option with a SL of 40 points above.
• If Market opens with gapup, one can wait for price action before making any trade.
• Maximum call OI of 18.11 lakh contracts was seen at 12,000 strike which will act as crucial resistance for the month
• Maximum put OI of 36.17 lakh contracts was seen at 10,500 strike which will act as crucial support for the month
Stock picks of the day
• HDFC -Stock closed at 1,785.10 on Tuesday and closed 0.31% down. There was some selling pressure during the last 1 hour of the trade. Expect the stock to test 1,805 levels during the early hours of trade on Wednesday
• Bharti Airtel -Stock closed at 424.45 on Tuesday well below its 30 day moving average. The stock tested the lower limit of the Bollinger band. Expect the stock to test 419 levels on an intraday basis
• INOX –Stock showed muted movement on Tuesday forming a dojiafter a big bearish candle on Monday. Expect the stock to continue its downward slide and slide to 283 levels
• ESCORTS –Stock closed at 1235.55 levels on Tuesday and closed 3.74% down. Stochastics show overbought signal on the stock. Expect the stock to test 1,220 levels on an intraday basis
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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