Stock Market Daily Updates: 1 Sep 2020

Dear Trader…

Indian stock market rallied in the wake of mixed moves by global markets following the Federal Reserve's predictable action in the US. The Indian stock market rebounded for the first day in a row for the seventh day in a row, led by banking and finance stocks But the latter saw a sharp decline in the market. 

The Indian stock market continued to rise as the Indian economy struggled to recover. And while foreign investors were investing heavily, the sell-off began on Monday after reports of a military clash between Indian and Chinese troops surfaced. The Sensex and Nifty crashed on the back of heavy selling in the Indian stock market. Tensions between India and China led to turmoil in the stock market. 

Friends, The implementation of new margin norms from September 1, clashes between India and China along the Line of Control, the possible sharp contraction in India's GDP, the highest number of COVID-19 cases in a day, and concerns of the virus spreading to rural India all contributed to the fall in the index that broke the lowest level in the last six days.

The market has seen a retreat of an estimated 80% from the recent lows supported by FPI takers. Apart from this, India also benefited from lower interest rates of global central banks. With crude prices hovering around 45$ a month in the past month, Indian stock markets have been able to control imports and reduce the trade deficit, but China's renewed friction on the China-India border could lead to strained relations and war. 

The Indian stock market saw a decline in caution. Rising tensions on the border between India and China and growing movement of Chinese troops across the country's borders have raised concerns against growing industrial-economic activity at the local level across the country. At this stage, in addition to the status of the Corona case, geopolitical tensions with China will be a key issue for India to monitor the movement of the Indian stock market.

From today, the Nifty’s trend would completely depend on how the new norms on margin are adapted in the market. It was critical that the Nifty future sustains above 11373 points. In that scenario, some sideways consolidation can be expected in the next trading session but the breach of 11303 points can initially drag the Nifty towards 11272 to 11202 points.

As per the my opinion, the talks are on to resolve the border issue and further escalation could derail the prevailing uptrend. Besides, the market will react to GDP numbers in early trade on September 1. Technically, a decline below 11373 points in the Nifty future will reverse the short-term uptrend. In case of a rebound, it will find it difficult to cross the 11505-11575 points. We suggest using rebound to reduce longs positions and wait till the trend are stable. Positive signals from the global market couldn’t help the recovery in the Indian market that saw the Traders should remain neutral on the long side, whereas positional shorting can be considered either on rally in the 11505 – 11575 points or on a close below 11303 for a target of 11202.

Dear Traders…. For the Trading Idea of…

Ø  Nifty Future opened @ 11449 as on 01.09.2020..!!

For Intraday, Nifty Future has resistance at 11474 – 11505 Point; above which other resistance levels are at 11517 – 11530 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 11404 – 11373 Point; below11373 Point, other support levels are at 11373 – 11303 Point.

I am positive for the next bullish trend only above @ 11505 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 @ 11505 Point, again then the upper side target is quite high and it may touch @ 11530 Point in the short term...!!!

Ø Bank Nifty Future opened @ 23850 as on 01.09.2020..!!

For Intraday, Bank Nifty Future has resistance at 23909 – 23970 Point; above which other resistance levels are at 24008 – 24202 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 23777 – 23676 Point; below23676 Point, other support levels are at 23606 – 23272 Point.

I am positive for the next bullish trend only above @ 24008 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 @ 24202 Point, again then the upper side target is quite high and it may touch @ 24240 Point in the short term...!!

Ø Trading Idea for the derivative stocks….

Ø INDIGO FO @ RS 1197

Positive Trend @ Rs 1197 / 1180 with Stop loss of Rs @ 1170 for the target near @ Rs 1218 - 1230 in short term…..!!!

Ø AURO PHARMA FO @ RS 808

Positive Trend @ Rs 808 / 793 with Stop loss of Rs @ 780 for the target near @ Rs 818 – 830 in short term…..!!!

Ø GRASIM FO @ RS 680

Positive Trend @ Rs 680 / 670 with Stop loss of Rs @ 663 for the target near @ Rs 696 - 710 in short term…..!!!

Ø INDUSIND BANK FO @ RS 636

Positive Trend @ Rs 636 / 626 with Stop loss of Rs @ 617 for the target near @ Rs 644 - 650 in short term…..!!!

Ø HDFC FO @ RS 1858

Negative Trend @ Rs 1858 / 1880 with Stop loss of Rs @ 1888 for the target near @ Rs 1844 – 1830 in short term...!!!

Ø MUTHOOT FINANCE FO @ RS 1164

Negative Trend @ Rs 1164 / 1177 with Stop loss of Rs @ 1188 for the target near @ Rs 1147 – 1130 in short term...!!!

Ø CIPLA FO @ RS 726

Negative Trend @ Rs 726 / 740 with Stop loss of Rs @ 747 for the target near @ Rs 717 – 707 in short term...!!!

Ø TACH MAHINDRA FO @ RS 744

Negative Trend @ Rs 744 / 760 with Stop loss of Rs @ 773 for the target near @ Rs 727 – 717 in short term...!!!

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