Pre - Market Report 20-10-2020

 

Global cues:

 

•      Wall Street's main indexes inched higher at the open on Monday on hopes of a coronavirus vaccine by the year-end, while investors were also encouraged by signs an agreement in Washington on a fiscal package could be reached soon.

•      The Dow Jones Industrial Average was up 67.45 points, or 0.24%, at 28,673.76, the S&P 500 was up 16.57 points, or 0.48%, at 3,500.38. The Nasdaq Composite was up 92.34 points, or 0.79%, at 11,763.89.

•      European stocks rose on Monday as strong earnings updates from Swiss wealth manager Julius Baer and Dutch firm Philips overshadowed worries about fresh coronavirus restrictions across the continent.

•      The pan-European STOXX 600 index advanced 0.6%, resuming gains after last week's small losses.

 

Indian markets:

 

•      On October 19,The BSE Sensex climbed 448.62 points or 1.12 percent to close at 40,431.60, while the Nifty50 rose 110.50 points or 0.94 percent to 11,873

•      Foreign institutional investors (FIIs) net bought shares worth Rs 1,656.78 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 1,621.73 crore in the Indian equity market on October 19.

•      Among sectors, Nifty PSU Bank rallied the most over 4 percent followed by Nifty Private Bank, Nifty Financial Services, Nifty Metals and Nifty FMCG. Nifty Media, Nifty Pharma, Nifty Auto and Nifty IT were the top losers.

•      Ace investors Rakesh Jhunjhunwala's wife Rekha Jhunjhunwala increased her stake in NCC in the September quarter (Q2), the company's shareholding pattern on BSE showed. Rekha Jhunjhunwala bought an additional 42.25 lakh shares of the midcap firm during the September quarter, increasing her stake from to 10.24 percent in Q2 from 9.55 percent in the June quarter. The stock rose as much as 2.1 percent to Rs 33.35 post on BSE post this. 

•      State-run firms also rose today after a report said the government had asked some of them to consider share buybacks. The Nifty Public Sector Enterprise sub-index ended 2.3% higher after Reuters reported the government had asked at least eight state-run companies to consider share buybacks in the current fiscal year. Shares of Coal India and top power utility NTPC added 3% and 1.7%, respectively.

•      Equitas Small Finance Bank will open its initial public offering for subscription for three days on October 20, with a price band at Rs 32-33 per share. This would be 12th public issue of this calendar year. The company is going to raise Rs 517.6 crore via public issue which consists a fresh issue of Rs 280 crore and an offer for sale of 7.2 crore equity shares by promoter Equitas Holdings to comply with RBI's listing norms.

•      The nifty contribution chart for today was as follows:

 

 

Trends:

 

•      As Nifty ended above the 11,850 level on Monday, it formed a Doji candle on the daily chart.

•      The upper 11,950-12,000 is going to be an overhead resistance for the short term. Immediate support is placed at 11,780

•      The upbeat start of the earnings season combined with the favourable global cues has helped the markets to recover in the last two sessions. Participants are still pinning hopes on the passage of the stimulus package in the US before the election and it will remain on their radar. However, on the flip side, any adverse news on COVID-19 might again push the bulls on the back foot. 

 

Option strategy for tomorrow:

 

•      If the market opens flat or with gapdown, one can buy call option as market is more likely to make upward movement.

•      If market opens with huge gapup, then it is quite likely that market may see profit booking, so one can buy put option.

•      Maximum Call open interest of 24.26 lakh contracts was seen at 12,500 strike, which will act as crucial resistance in the October month

•      Maximum Put open interest of 25.16 lakh contracts was seen at 11,000 strike, which will act as crucial support in the October month

•      The markets are expected to remain positive yet cautious approach and preferring hedged positions.

Stock picks:

•      Kotak Mahindra: Recently gave a breakout at 1350.Resistance1 at 1375.Buy recommendations with a SL of 1360.

•      Sun TV: Sell if breakdown below 430.At critical support level 435-430. SL- 435.

•      Pidilite- 1500 level breakout on Monday. Buy on dips. Target 1550 SL 1520.

•      Reliance: Critical support 2170. Short position below 2170 can be taken. SL -2185. Target 2155.

Results on October 20

Hindustan Unilever, Larsen & Toubro Infotech, Bombay Dyeing & Manufacturing, CCL Products, CRISIL, Continental Securities, DCM Shriram, Digicontent, Fischer Chemic, Gujarat Ambuja Exports, Granules India, Hindustan Zinc, Indo Cotspin, Indian Energy Exchange, JSW Ispat Special Products, Kajaria Ceramics, Ashika Credit Capital, Mahindra CIE Automotive, Maharashtra Scooters, Oriental Aromatics, Punjab Alkalies & Chemicals, Ramkrishna Forgings, Sayaji Hotels, Shiva Cement, Simplex Mills Company, Simplex Papers, Simplex Realty, Transglobe Foods and Websol Energy System will announce quarterly earnings.

 

Pre Market Report - 16th October 2020

 

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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