Stock Market Daily Updates: 17 Aug 2020

In my opinion, the Nifty futures have been consolidating in the range of 11088 to 11272 points. if the Nifty Future closes above 11303 points, the Nifty will move from 11373 to 11404 points

The 11088 point level will be the most important support level for the Nifty futures and the lows seen in March may be a thing of the past. According to my personal advice, a wise investor should book a profit in stages…!!!

Dear Trader…

The record growth in the number of Corona infections in the country is an important factor affecting the Indian economy at the local level. Due to which the concerned state governments are adopting the policy of local lockdown, which is an impediment to the recovery seen in the business. Data and statements from the management of various companies indicate that the recovery in rural areas is accelerating compared to urban areas due to the Koro epidemic.

The rural recovery is getting more support due to factors like blooming monsoon, increase in demand for agricultural products as well as government support for agriculture.

In the coming days, markets around the world are likely to focus on political as well as trade relations between the US and China. However, there are signs of recovery in the economy after the country's lockdown eased on a phased basis since May. Globally, the growing transition to the Corona, as well as geopolitical tensions, has cast a cloud of uncertainty over the prospect of an economic recovery.

GDP is projected to remain in the negative zone in the current financial year.CPI Inflation rose to 6.93% in July on account of higher food prices at the local level. The rise may primarily be attributed to rise in prices of vegetables, household goods, retail petrol and gold prices. Retail inflation has come close to 7% in July. It was 6.09% in June. Which has been revised to 6.23% in public figures? The figure was not released in April and May before June due to lockdowns. In April, the March figure was revised from 5.91% to 5.84%.

IIP contracted for a fourth consecutive month amid the Covid pandemic. However, post lifting of nationwide lockdown, the decline slowed down to 16.6% in June as opposed to a 34% decline in May. Manufacturing sector contracted 17.1% YoY. Mining & power output declined 19.8% and 10% YoY, respectively. However, due to the pandemic situation, June IIP numbers are not comparable to the previous data.

The US markets ended higher amid investor optimism surrounding Fed stimulus and corona virus vaccine. The number of US citizens filing new claims for unemployment benefits continued to remain near the record highs. Initial claims for state unemployment benefits came at a seasonally adjusted 0.96 million for the week ended Aug 8, 2020 vs 1.2 million cases in the prior week.

The US Fed policymakers have said that the recovery in the US will be slow and gradual until the virus is contained and they ruled out a V-shaped recovery. The European markets ended higher as early result of Modern vaccine came positive and pickup in UK inflation. Euro zone Industrial output rose 9.1% MoM which was less than economist’s estimate of 10% in June.

Markets in Asia and Europe rallied on the back of a rally in futures in the US markets following a statement by Russia that it was the first to introduce a vaccine for corona in global markets and that US President Donald Trump was considering reducing taxes on capital gains. Amid the global crisis of the Corona epidemic, various countries are being forced to increase stimulus in India as well.

The Corona crisis is expected to lead to a recession in most of the world's economies this year. This suspicion has proved true for Britain. GDP fell 20.4% in the second quarter due to a lockdown imposed to contain the Covid-19 epidemic. According to figures from the UK's National Statistics Office, the economy contracted by 2.2% in the first quarter of 2020, ending in March. In the second quarter of June, it has declined by 20.4%.

The World Bank has said that the global economy is in the throes of a post-World War II recession. The World Bank estimates that the global economy is expected to shrink by 5.2% this year. The global economy has slowed down a total of 14 times since 1970 years.

Next week will see the impact of the Covid-19 position and the companies' quarterly results on the Indian stock market. At the same time, investors will be keeping an eye on the monsoon situation as the good performance of the agricultural sector could prove crucial in reviving the Corona virus-infected India's economy. Economic indicators are improving. With the unlock some sectors are returning to normal, but the strong possibility of cycling inside and outside the lockdown remains. Global stock markets improved as vaccine inventors and the possibility of a massive relief package announced by the US.

In my opinion, the Nifty futures have been consolidating in the range of 11188 to 11272 points. if the Nifty Future closes above 11303 points, the Nifty will move from 11373 to 11404 points by the end of August and the market is said to be out of the grip of Covid-19.

The 11088 point level will be the most important support level for the Nifty futures and the lows seen in March may be a thing of the past. According to my personal advice, a wise investor should book a profit in stages…!!!

Dear Traders…. Trading Idea for the….

Nifty Future opened @ 11272 as on 17.08.2020

For Weekly , Nifty Future has resistance at 11303 – 11317 Point; above which other resistance levels are at 11330 – 11347 Point with highly Volatile Trend.

Nifty Future has Downside support levels are at 11260 – 11233 Point; below 11202 Point, other support levels are at 11188 – 111860 Point.

I am positive for the next bullish trend only above @ 11347 Point but be with the trend. Let the market decide further moves. As we are saying from many days, Buying is suggested in falls only...and it’s still a better strategy in the given Scenario

Regarding Long term positions, it is preferable to remain cautious now

If Nifty Future crosses @ 11347 Point, again then the upper side target is quite high and it may touch @ 11373 Point in the short term

Bank Nifty Future opened @ 21900 as on 17.08.2020

For Weekly, Bank Nifty Future has resistance at 21970 – 22008 Point; above which other resistance levels are at 22088 – 22120 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 21606 – 21533 Point; below 21533 Point, other support levels are at 21474 – 21404 Point.

I am positive for the next bullish trend only above @ 22120 Point but be with the trend. Let the market decide further moves. As we are saying from many days, Buying is suggested in falls only...and it’s still a better strategy in the given Scenario

Regarding Long term positions, it is preferable to remain cautious now

If Bank Nifty Future crosses @ 22120 Point, again then the upper side target is quite high and it may touch @ 222202 Point in the short term

Trading Idea for the derivative stocks….

INFOSYS FO @ RS 959

Positive Trend @ Rs 960 / 950 with Stop loss of Rs @ 940 for the target near @ Rs 974 - 985 in short term 

GLENMARK PHARMA FO @ RS 474

Positive Trend @ Rs 474 / 464 with Stop loss of Rs @ 460 for the target near @ Rs 488 - 505 in short term

BIOCON LTD FO @ RS 395

Positive Trend @ Rs 395 / 386 with Stop loss of Rs @ 380 for the target near @ Rs 404 - 410 in short term 

HIND PETRO FO @ RS 209

Positive Trend @ Rs 209 / 203 with Stop loss of Rs @ 197 for the target near @ Rs 216 - 222 in short term 

ACC LTD FO @ RS 1394

Negative Trend @ Rs 1394 / 1404 with Stop loss of Rs @ 1414 for the target near @ Rs 1380 - 1373 in short term

AURO PHARMA FO @ RS 880

Negative Trend @ Rs 880 / 888 with Stop loss of Rs @ 898 for the target near @ Rs 860 - 853 in short term

TATA STEEL FO @ RS 428

Negative Trend @ Rs 428 / 438 with Stop loss of Rs @ 444 for the target near @ Rs 417 - 409 in short term

CENTURY TEX. FO @ RS 312

Negative Trend @ Rs 312 / 317 with Stop loss of Rs @ 323 for the target near @ Rs 306 - 300 in short term

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