Stock Market Daily Updates: 21 Sep 2020

Dear Trader…

The Indian stock market rebounded in anticipation of a positive impact on the agro-rural economy and a stimulus package in the country in the coming days, in anticipation of heavy rains this year along with global positive factors.

SEBI's circular with new rules for multicap funds has signaled a major shift in the mutual fund industry. The rule is to be implemented from January 2021 to prevent the market from being shaken in the coming days as many fund managers have to make major changes to their schemes, but the market is likely to be affected in the coming days.

The Indian stock market plunged over the weekend amid growing uncertainty amid a 25.42% drop in India's total exports from April to June of the current fiscal and persistent tensions on the border with China.

Globally, the U.S. Global markets remain weak as global signals remain weak after the Federal Reserve's hopes of fiscal stimulus, and the Fed's failure to live up to investor expectations, with the Fed forecasting unchanged US interest rates by the end of 2023 but not going beyond that. At the same time, the Indian stock market declined with a negative impact.

Corona epidemic has affected many countries. The epidemic has also been fatal for India. In April-June of the financial year 2020-21, India's economy recorded its biggest ever decline of 23.9%, followed by Japan, New Zealand and Australia, America, and Britain. People have been forced to stay in their homes to prevent the spread of the corona virus, with hotels, restaurants and stores closed, travel and tourism badly affected, a similar environment around the world, but the Japanese economy affected far more than any other country.

Globally, Japan's economy fell to a record low in the second quarter of April-June, much higher than the initial estimate, and Japan's GDP fell 28.1% year-on-year, much higher than last month's estimate of 27.8%. Australia's economy has been hit hard by the corona virus epidemic, and the country is facing a recession for the first time in twenty-eight years, according to figures released last week. There is a big decline, the first of which was a 2% decline in the economy on 15 June 1974. Britain's economy is recovering, with figures released on Friday showing that the economy is set to pick up again in July, although it has recovered by as much as 50% since the peak of the lockdown, and there are still new risks associated with Brexit. On a year-on-year basis, it has registered a growth of 6.6%, with many areas shutting down for months due to lockdowns.

Friends, despite global progress in the corona vaccine case, there is still uncertainty about the accuracy of the vaccine and progress in drug research. The RBI is gearing up to fight the battle and is taking all necessary steps. The recovery of India's economy will be slow in the current financial year but it will see a gradual improvement. India will see its gains in the coming days as crude oil prices fall. Mid-cap and small-cap stocks are likely to see more buying due to SEBI's new circular for mutual funds.

The country's economy is in crisis, with cases rising steadily during the Corona epidemic. With the economic situation worsening and the steady decline in industrial production, the rising unemployment rate in industries and companies is likely to escalate, forcing the government to re-launch a massive stimulus package for relief and incentives. 

And the Indian stock market is in turmoil. Tensions on the border between India and China remain high. Despite foreign minister level talks between the two countries, the border will remain under constant watch due to uncertainty in the short term.

The short-term trend of Nifty future is range-bound with positive bias. Renewed buying enthusiasm could only occur above 11533 point and that is likely to pull the market towards 11575 levels in a quick period of time. Important lower supports to be watched at 11474 and a breach below this support could trigger more weakness in the near term.

Dear Traders…. For the Trading Idea of…

Ø  Nifty Future opened @ 11491 as on 21.09.2020..!!

For Intraday, Nifty Future has resistance at 11517 – 11533 Point; above which other resistance levels are at 11547 – 11560 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 11474 – 11440 Point; below11440 Point, other support levels are at 11417 – 11404 Point.

I am positive for the next bullish trend only above @ 11560 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 @ 11560 Point, again then the upper side target is quite high and it may touch @ 11575 Point in the short term...!!!

ØBank Nifty Future opened @ 22025 as on 21.09.2020..!!

For Intraday, Bank Nifty Future has resistance at 22088 – 22133 Point; above which other resistance levels are at 22188 – 22230 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 21970 – 21909 Point; below21909 Point, other support levels are at 21880 – 21808 Point.

I am positive for the next bullish trend only above @ 22230 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 @ 22230 Point, again then the upper side target is quite high and it may touch @ 22272 Point in the short term...!!

Ø Trading Idea for the derivative stocks….

Ø HDFC LTD FO @ RS 1724

Positive Trend @ Rs 1724 / 1708 with Stop loss of Rs @ 1688 for the target near @ Rs 1744 - 1760 in short term…..!!!

Ø LARSEN LTD FO @ RS 894

Positive Trend @ Rs 894 / 883 with Stop loss of Rs @ 877 for the target near @ Rs 909 - 913 in short term…..!!!

Ø AURO PHARMA FO @ RS 840

Positive Trend @ Rs 840 / 828 with Stop loss of Rs @ 818 for the target near @ Rs 863 - 870 in short term…..!!!

Ø M & M FO @ RS 658

Positive Trend @ Rs 658 / 644 with Stop loss of Rs @ 636 for the target near @ Rs 677 - 690 in short term…..!!!

Ø ACC LTD FO @ RS 1427

Negative Trend @ Rs 1427 / 1444 with Stop loss of Rs @ 1460 for the target near @ Rs 1408 – 1397 in short term...!!!

Ø MUTHOOT FIN. FO @ RS 1119

Negative Trend @ Rs 1119 / 1133 with Stop loss of Rs @ 1140 for the target near @ Rs 1103 – 1093 in short term...!!!

Ø LUPIN LTD FO @ RS 1093

Negative Trend @ Rs 1093 / 1108 with Stop loss of Rs @ 1120 for the target near @ Rs 1078 – 1066 in short term...!!!

Ø CIPLA LTD FO @ RS 810

Negative Trend @ Rs 810 / 827 with Stop loss of Rs @ 833 for the target near @ Rs 797 – 787 in short term...!!!

Note :- Before Act please refer & agree Terms & conditions, Disclaimer, privacy policy & agreement on www.nikhilbhatt.in