Global cues:
• The S&P 500 and the Dow hovered at near three-week highs on Tuesday as investors looked for signs that Washington was close to agreeing on more fiscal stimulus, while a selloff in some of the biggest technology stocks weighed on the Nasdaq.
• The Dow Jones Industrial Average was up 0.21%, the S&P 500 was down 0.11% and the Nasdaq Composite was down 0.40%.
• European stocks eased from a two-week high on Tuesday as a slide in technology and healthcare stocks along with mixed corporate updates tempered optimism about a US stimulus package that bolstered Wall Street indexes overnight.
• The pan-European STOXX 600 slipped 0.4%, with the German DAX and France's CAC 40 down about 0.3%, while London's FTSE 100 fell 0.5%.
• Asian stock markets advanced to a more than two-week high on Tuesday after US President Donald Trump was discharged from hospital following treatment for Covid-19, and as prospects for a fresh US stimulus package appeared to brighten.
Indian markets:
• On October 6,The BSE Sensex jumped 600.87 points, or 1.54 percent, to close at 39,574.57, while the Nifty50 rose 159 points or, 1.38 percent, to 11,662.40, the highest closing level since February 26 this year.
• Foreign institutional investors (FIIs) net bought shares worth Rs 1,101.76 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 934.84 crore in the Indian equity market on October
• Among the sectors, BSE Finance was the top sectoral gainer as it advanced 3.04 per cent, with all of its constituents in the green. BSE Realty, Bankex, Auto, Consumer Discretionary and Industrials also gained between 0.75 per cent and 2.50 per cent. On the other hand, Metal, Oil & Gas and Power indices declined 0.58 per cent, 0.22 per cent and 0.19 per cent, respectively.
• With a rally of 8 per cent, HDFC emerged as the top contributor in Tuesday's rally. The scrip hogged momentum after the company said its individual loan disbursements in the second quarter of 2020-21 reached 95 per cent of the level in the year-ago period and September witnessed the strongest recovery since the outbreak of Covid-19 pandemic, suggesting business is returning to pre-crisis levels.
• Shares of Infibeam Avenues got locked at 5 per cent upper circuit limit after the company signed a deal to license its ecommerce and payment software to Jio Platforms, Reliance Jio’s digital platform venture.
• A wholly-owned subsidiary of Abu Dhabi Investment Authority (ADIA) will invest Rs 5,512.50 crore in Reliance Retail Ventures. ADIA’s investment will translate into a 1.20 per cent equity stake in Reliance Retail on a fully diluted basis. This investment values Reliance Retail at a pre-money equity value of Rs 4.285 lakh crore.
• Likhitha Infrastructure, whose IPO has been extended till 7th October, attracted 9.50 times bids till Tuesday evening. The issue has received bids for 4,84,24,750 shares till 4.30 pm (IST) against the issue size of 51,00,000 shares.
• Govt appoints Dinesh Kumar Khara as SBI chairman for 3 years. Khara will replace Rajnish Kumar, whose three-year term comes to an end on 7 Oct
• The nifty contribution chart for today was as follows:
Trends:
• Nifty ended higher for the fourth straight session on Tuesday, it formed a bullish candle on the daily chart.
• Nifty has surpassed the hurdle at 11,600 and it is now eyeing the 11,800 zone. So buying on dips” in the index while stocks may continue to see the swings on both sides.
• RBI will begin its policy meeting from 7th October, which will be eyed by investors.
•
Investors will
also track the development on $2.2 trillion stimulus package which is likely to
boost stock markets.
Option strategy for tomorrow:
• Tomorrow if Nifty opens with flat or gapdown, one can buy Call option with a stop loss of 50 points.
• If Nifty opens with a huge gapup, then market can be rangebound, so no point in buying or selling naked options.
• Maximum call OI of 19.67 lakh contracts was seen at 12,000 strike, which will act as crucial resistance for the month
• Maximum put OI of 35.26 lakh contracts was seen at 10,500 strike which will act as crucial support for the month
• Market sentiments are positive for now and they reflect the industry’s optimism. The Services PMI is at a six-month high, while the Manufacturing PMI is at its highest in over eight years. As we enter the Q2 results season one could expect heightened stock-specific activity.
Stock picks of the day:
• HDFC – Stock closed at 1934.40 on Tuesday and closed 8.36% up showing strong signs of increase in mortgage spreads is a positive for NII and PPoPgrowth. Expect the stock to test 1,952 levels with some strong buying in the early hours of market.
• Bharti Airtel – Stock closed at 426.75 on Tuesday with some strong buying in the last 30min of trade. MACD shows a bullish indicator on the stock, expect the stock to test 431 levels on Wednesday
• Infosys – Stock showed muted movement on Tuesday testing 1,035 levels on an intraday basis, expect the stock to show positive movement towards 1,064 levels on Wednesday
Results on October 7
Tata Consultancy Services, Majesco, MIC Electronics, Unity Infraprojects and Zee Learn will announce their quarterly earnings on October 7.
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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