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Stock Market Daily Updates: 31 Aug 2020
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 11707 points. The next resistance is placed at 11808 to 11888 points.
Photo Credit :
Dear Trader… After opening on a positive note, the Nifty moved towards 11808 due to massive short covering rally in banking and financial stocks. The Nifty has gained more than 4% in the August series, which is the third consecutive positive series for the Nifty On the rollover front, the Nifty saw above average rolls as Nifty OI increased to a multi-month high at 11.3 million shares along with increase in roll spread suggesting long accumulation in the index. Key point to highlight in the last week's up move is that, only Banking (which carries 33% weightage in the Nifty) led the rally whereas other sectors have undergone temporary profit booking. The lack of across sector participation indicates possibility of impending consolidation in coming weeks. While global cues remained positive, FIIs remained net buyers throughout the week. Most index heavyweights have seen better than average rolls in the September series along with increased roll spreads. While the banking space is the major driver of the index, The US markets ended higher due to positive development on the US-China trade front, lower interest rate for longer expectation and progress on the vaccine trials held by Astrazeneca. US markets (S&P 500) moved to life-time highs while continued participation was seen primarily from technology heavyweights. 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 1 million for the week ended Aug 22, 2020 vs 1.1 million cases in the prior week. Newer estimates for US GDP for second quarter shows contraction of 31.7% The Dollar Index reverted towards 93.30 levels but moved below 92.50 once again post a change in Fed inflation policy. The US$INR has also appreciated below 73.50 levels In India, FIIs remained net buyers for a sixth consecutive week. They bought almost 6072 crore in Indian equities. Meanwhile, domestic institutions continued to exit at higher levels and sold 2764 crore in equities last week |
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 11707 points. The next resistance is placed at 11808 to 11888 points.
We suggest booking some profit as the benchmark may see a higher after testing the immediate hurdle at 11676 points.
Dear Traders…. For the Trading Idea of…
Ø Nifty Future opened @ 11764 as on 31.08.2020
For Intraday, Nifty Future has resistance at 11797 – 11808 Point; above which other resistance levels are at 11818 – 11833 Point with highly Volatile Trend,
Nifty Future has Downside support levels are at 11733 – 11707 Point; below11707 Point, other support levels are at 11686 – 11660 Point.
I am positive for the next bullish trend only above @ 11808 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 @ 11808 Point, again then the upper side target is quite high and it may touch @ 11888 Point in the short term.
ØBank Nifty Future opened @ 24900 as on 31.08.2020
For Intraday, Bank Nifty Future has resistance at 25088 – 25130 Point; above which other resistance levels are at 25250 – 25373 Point with highly Volatile Trend,
Bank Nifty Future has Downside support levels are at 24808 – 24733 Point; below24733 Point, other support levels are at 24676 – 24606 Point.
I am positive for the next bullish trend only above @ 25250 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 @ 25250 Point, again then the upper side target is quite high and it may touch @ 25373 Point in the short term...!!
Ø Trading Idea for the derivative stocks….
Ø HDFC FO @ RS 1903
Positive Trend @ Rs 1903 / 1888 with Stop loss of Rs @ 1880 for the target near @ Rs 1919 - 1940 in short term
Ø INFOSYS FO @ RS 938
Positive Trend @ Rs 939 / 919 with Stop loss of Rs @ 909 for the target near @ Rs 953 - 960 in short term
Ø TECH MAHINDRA FO @ RS 750
Positive Trend @ Rs 750 / 744 with Stop loss of Rs @ 730 for the target near @ Rs 767 - 774 in short term
Ø GRASIM FO @ RS 701
Positive Trend @ Rs 701 / 686 with Stop loss of Rs @ 680 for the target near @ Rs 723 - 730 in short term
Ø DIVIS LAB FO @ RS 3292
Negative Trend @ Rs 3292 / 3333 with Stop loss of Rs @ 3377 for the target near @ Rs 3292 – 3230 in short term
Ø INDIGO FO @ RS 1206
Negative Trend @ Rs 1206 / 1233 with Stop loss of Rs @ 1247 for the target near @ Rs 1188 – 1173 in short term.
Ø SUN PHARMA FO @ RS 561
Negative Trend @ Rs 561 / 575 with Stop loss of Rs @ 588 for the target near @ Rs 547 – 533 in short term.
Ø RELIANCE FO @ RS 2170
Negative Trend @ Rs 2170 / 2193 with Stop loss of Rs @ 2203 for the target near @ Rs 2147 – 2133 in short term...!!!
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