Global cues:
• Wall Street's main indexes rose on Thursday as US President Donald Trump signaled progress in negotiations around new fiscal stimulus, while data showed jobless claims remained stubbornly high last week.
• The Dow Jones Industrial Average was up 0.40%, the S&P 500 was up 0.55% and the Nasdaq Composite was up 0.49%.
• European stocks inched higher on Thursday, joining a global rally on hopes of more U.S. stimulus, with positive brokerage recommendation on ad firms and upbeat forecast from bookmaker GVC Holdings boosting sentiment.
• The pan-European STOXX 600 index rose 0.4% to hover near a two-week high hit earlier this week. The German DAX gained 0.4%, but France's CAC 40 and London's FTSE 100 were up just marginally.
Indian markets:
• On October 8, The BSE Sensex rose 303.72 points to close at 40,182.67, while the Nifty50 was up 95.70 points at 11,834.60, the fresh seven-month high
• Foreign institutional investors (FIIs) net bought shares worth Rs 978.37 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 19.85 crore in the Indian equity market on October 8
• Among the sectors, Nifty IT was the biggest sectoral gainer on NSE, rising 3.23 per cent, followed by Nifty Pharma that gained 2.47 per cent. Nifty Private Bank and Nifty Financial Service also registered decent gains. Meanwhile, Nifty Media and Nifty FMCG closed with losses.
• Today, the Indian markets had two reasons to cheer. First, the global cues were strong on renewed hopes of a fresh stimulus in the US. And second, the Indian IT stocks rose sharply after the strong Q2 performance by TCS, which helped the index to continue its upward march for the sixth day in a row.
• The RBI will announce its monetary policy tomorrow. The market expects the rates to remain unchanged and the RBI to maintain its accommodative stance. The RBI could also release its GDP expectation for FY21. Banking stocks could see higher trading interest tomorrow.
• Vedanta under pressure as delisting process is underway; stock down 14% this week
• Wipro shares surged over 9 percent to hit a 52-week high on Thursday after the IT firm said its board will consider a buyback plan on October 13. The announcement comes on a day when larger rival Tata Consultancy Services (TCS) board has cleared a Rs 16,000 crore buyback plan.
• The nifty contribution chart for today was as follows:
Trends:
• Nifty ended higher for the sixth consecutive session on Thursday, but formed a Inverted hammer candle on the daily chart,hinting at a pause in momentum.
• A Doji candle indicates there is some indecisiveness among the bulls and the bears and bounces were being sold in the absence of follow-up buying interest.
• Nifty has to hold above 11,700 level to witness a further bounce towards 11,900 and 12,000 levels, while on the downside, major support exists at 11,600 level.
Option strategy for tomorrow:
• Nifty ended with Inverted Candle indicating indecisiveness in market.
• One can buy Nifty put option below 11820 level with SL at 11850 for a target of 11770/ 11730.
• If Market opens with huge gap down then wait for price action before taking any trade.
• Maximum call OI of 20.01 lakh contracts was seen at 12,500 strike, which will act as crucial resistance for the Month.
• Maximum put OI of 24.55 lakh contracts was seen at 11,000 strike, which will act as crucial support for the Month.
Stock picks of the day:
• IndiabullsHousing Finance – Stock closed at 149.05 on Thursday and closed 1.29% down and Bearish Engulfing on Day charts show a bearish signals. Expect the stock to test 145 levels with a stop loss of 154.
• ITC – Stock closed at 167 on Thursday and closed 1.42% down. A possible reversal in short term from 167-165 range. For Positional trade, Buy in small lots and average it out if the stock goes down further.
• Coal India – Stock closed at 113.45 on Thursday and closed 0.87% down. RSI and MACD have a sell signal on the stock. Stock saw selling pressure on Thursday and expect the stock to face downward pressure on Friday as well and test the level of 110.
Results on October 9
Rashtriya Chemicals & Fertilizers, Steel Strips Wheels, Integrated Capital Services, Indian Acrylics and Terai Tea will announce their quarterly earnings on October 9.
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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