Stock Market Daily Updates: 01 Oct 2020

Dear Trader…

Nifty & Bank Nifty future traded on higher technical level with positive reports that the government would inject Rs 20,000 crore in new capital into banks, but the upside was capped as the risk appetite of investors remained low following mixed global cues amid caution over the outcome of US presidential elections weighed on sentiment. Spiraling corona virus infections also worried traders.

The overbought position in the early stages of the stock market was seen easing with each upswing. Reports of postponement of the Monetary Policy Meeting (MPC) by the Reserve Bank of India and the deteriorating state of the country's economy are likely to force the central government to borrow heavily from the RBI in the coming days.

Friends, The Reserve Bank of India (RBI) maintained interest rates at its meeting in August. Retail inflation in the country has been hovering above 6%, well above the Reserve Bank's target of between 2% and 4%. Since February this year, the RBI has slashed the repo rate by an estimated 115 basis points. we are seeing mixed trends within sectors, so be extra cautious while selecting stocks, traders should keep a close watch on world indices for further cues.

Markets tested major support at 200-DMA on Nifty and NSE500 and rebounded from over the last few sessions. The rally has been supported by the return of net buy flows from domestic institutional investors.

The Nifty is placed at the hurdle of the up-trend line as per the concept of change in polarity around 11303 levels. The overall market breadth was not in the favor of the bulls, as the broader market indices like mid and small cap segments ended with minor loss.

The short-term trend continues to be volatility. If the Nifty fails to show a sustainable up move above the immediate hurdle of 11373 points in the next couple of sessions, then there is a possibility of weakness emerging from the highs.

The Nifty future has strong resistance near 11373 points; above it the level can activate good momentum, which can push the Nifty to the next hurdle zone of 11414 – 11440 points. Overall, the index may trade in consolidation in the 11303 to 11414 points.

Dear Traders…. For the Trading Idea of…

Nifty Future opened @ 11356 as on 01.10.2020

For Intraday, Nifty Future has resistance at 11373 – 11404 Point; above which other resistance levels are at 11417 – 11434 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 11313 – 11303 Point; below11303 Point, other support levels are at 11272 – 11260 Point.

I am positive for the next bullish trend only above @ 11404 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 @ 11404 Point, again then the upper side target is quite high and it may touch @ 11434 Point in the short term

Ø Bank Nifty Future opened @ 21676 as on 01.10.2020..!!

For Intraday, Bank Nifty Future has resistance at 21707 – 21777 Point; above which other resistance levels are at 21808 – 21888 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 21606 – 21575 Point; below21575 Point, other support levels are at 21474 – 21404 Point.

I am positive for the next bullish trend only above @ 21888 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 @ 21888 Point, again then the upper side target is quite high and it may touch @ 21909 Point in the short term

Ø Trading Idea for the derivative stocks….

Ø ACC LTD FO @ RS 1402

Positive Trend @ Rs 1402 / 1388 with Stop loss of Rs @ 1380 for the target near @ Rs 1423 - 1430 in short term

Ø INDIGO FO @ RS 1261

Positive Trend @ Rs 1261 / 1244 with Stop loss of Rs @ 1230 for the target near @ Rs 1277 - 1290 in short term

Ø HDFC BANK FO @ RS 1090

Positive Trend @ Rs 1090 / 1073 with Stop loss of Rs @ 1060 for the target near @ Rs 1103 - 1113 in short term

Ø TECHM FO @ RS 801

Positive Trend @ Rs 801 / 787 with Stop loss of Rs @ 780 for the target near @ Rs 813 - 820 in short term

Ø RELIANCE IND. FO @ RS 2265

Negative Trend @ Rs 2265 / 2277 with Stop loss of Rs @ 2290 for the target near @ Rs 2244 – 2230 in short term

Ø CIPLA LTD FO @ RS 781

Negative Trend @ Rs 781 / 793 with Stop loss of Rs @ 808 for the target near @ Rs 767 – 760 in short term

Ø GRASIM IND. FO @ RS 750

Negative Trend @ Rs 750 / 777 with Stop loss of Rs @ 787 for the target near @ Rs 737 – 730 in short term

Ø GLENMARK PHARMA FO @ RS 491

Negative Trend @ Rs 491 / 508 with Stop loss of Rs @ 514 for the target near @ Rs 477 – 470 in short term

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