Stock Market Daily Updates: 28 Aug 2020

Dear Trader…

The Indian stock market has been moving at a slow pace over the last few days. The banking and mid-cap segment is seeing improvement. While the Bank Nifty has risen, the Nifty has also found support. Although the threat of Corona epidemic still lingers around the world, India, along with many other countries in the world, continues to unlock massive industrial and economic activity and the positive impact of government, Reserve Bank of India's incentives is expected to accelerate economic recovery. 

The Indian stock market rallied on expectations of accelerating growth in rural areas through higher growth in agriculture. The performance of the Indian stock market over the past few weeks has also been strong compared to global markets due to the inflow of investment by FPIs.  

Friends, The Indian stock market has consistently outperformed the global stock market in August. With the dollar index staying low and the Federal Reserve's cautious attitude in the US, the flow of funds has shifted to countries like India. In August, FPIs rallied in the Indian stock market and were supported by improving markets. 

The Prime Minister's mission to make the country self-reliant, the incentives given by the government during the challenging period, the positive effects of various measures to bring money into the liquidity system are now beginning to show in Unlock India, business-trade activities are getting active again. 

The rural economy is likely to recover from the good rains and show high growth in the agricultural sector in the coming days. At the same time, global prices of assets such as currency, crude and bullion have collided over the past few days, depending on US data and the Federal Reserve's announcement in September, as well as monsoon progress, rupee-US dollar fluctuations and international crude oil prices. The Indian stock market will keep an eye.

India VIX fell by 2.16 percent at 18.89 levels. Volatility is gradually cooling down, which suggests a bullish stance and buy on decline strategy could continue in the market. Markets could stabilize and take a pause for the next one session before resuming the up move.

The short-term trend of the Nifty future continues to be highly volatile. Trader needs to be cautious about the longs, as there is a possibility of a sharp trigger of downward correction from the highs. Immediate supports to be watched at 11575 points. The next resistance is placed at 11660 to 11688 points. 

We suggest booking some profit as the benchmark may see a higher after testing the immediate hurdle at 11606 points.

Dear Traders…. For the Trading Idea of…

Nifty Future opened @ 11633 as on 28.08.2020

For Intraday, Nifty Future has resistance at 11646 – 11660 Point; above which other resistance levels are at 11688 – 11707 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 11606 – 11575 Point; below11575 Point, other support levels are at 11530 – 11505 Point.

I am positive for the next bullish trend only above @ 11676 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 @ 11660 Point, again then the upper side target is quite high and it may touch @ 11688 Point in the short term

Ø Bank Nifty Future opened @ 23679 as on 28.08.2020

For Intraday, Bank Nifty Future has resistance at 23737 – 23808 Point; above which other resistance levels are at 23888 – 23930 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 23606 – 23560 Point; below23560 Point, other support levels are at 23505 – 23474 Point.

I am positive for the next bullish trend only above @ 23930 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 @ 23930 Point, again then the upper side target is quite high and it may touch @ 24009 Point in the short term

Ø Trading Idea for the derivative stocks….

Ø HDFC FO @ RS 1875

Positive Trend @ Rs 1875 / 1860 with Stop loss of Rs @ 1848 for the target near @ Rs 1888 - 1903 in short term

Ø LUPIN FO @ RS 990

Positive Trend @ Rs 990 / 977 with Stop loss of Rs @ 970 for the target near @ Rs 1003 - 1013 in short term

Ø CIPLA FO @ RS 763

Positive Trend @ Rs 763 / 750 with Stop loss of Rs @ 744 for the target near @ Rs 783 - 793 in short term

Ø AURO PHARMA FO @ RS 880

Positive Trend @ Rs 880 / 870 with Stop loss of Rs @ 860 for the target near @ Rs 893 - 909 in short term

Ø RELIANCE FO @ RS 2138

Negative Trend @ Rs 2138 / 2160 with Stop loss of Rs @ 2173 for the target near @ Rs 2117 – 2107 in short term

Ø ACC FO @ RS 1422

Negative Trend @ Rs 1422 / 1440 with Stop loss of Rs @ 1447 for the target near @ Rs 1403 – 1390 in short term

Ø INDIGO FO @ RS 1208

Negative Trend @ Rs 1208 / 1222 with Stop loss of Rs @ 1230 for the target near @ Rs 1193 – 1180 in short term

Ø INFOSYS FO @ RS 955

Negative Trend @ Rs 955 / 966 with Stop loss of Rs @ 977 for the target near @ Rs 937 – 930 in short term

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