Stock Market Daily Updates: 6 Oct 2020

Dear Trader…

On the first day of the week, the Indian stock market started trading very positive, taking cues from the global market as the Supreme Court deferred the decision on repayment of loans and waiver of interest on loans up to Rs 2 crore.

The Indian stock market closed higher ignoring global signals and rising corona virus infection, led by IT, tech, metal and pharma stocks. Shares of Tata Consultancy Services surged an estimated 8% to reach Rs 10 lakh crore for the first time. Shares of Tata group company TCS have risen an estimated 25% this year. TCS has become the second Indian company after Reliance Industries to have a market share of over Rs 10 lakh crore.

Friends, FPIs are withdrawing money from Indian markets in the wake of the US presidential election and the uncertainty created by the Corona.now that US President Donald Trump and his wife have turned Covid-19 positive, the investment climate has deteriorated. In the midst of the Corona crisis, in the near-term, the market is expected to maintain its optimism based on US President Donald Trump’s recovery, hopes of stimulus in US and India, upcoming Q2FY21 results in India.

Foreign portfolio investors invested heavily in the Indian stock market and debt funds. This process of investing from a foreign portfolio investor lasted for three consecutive months. After this, in September 2020, the foreign portfolio investor booked huge profits during which they withdrew an estimated net investment of Rs 3419 crore from the country's capital market. Uncertainty is also growing in many countries due to the second wave of corona virus. At the local level, the lockdown is almost complete across the country, with economic activity rising at all levels, as well as a favorable picture on the export front. 

According to available data, exporters received 20% more orders for October-November than in the previous five months. The new orders received for export have reached around the time of the Corona epidemic. Given the prevailing circumstances, exports are likely to grow significantly during the October-December quarter.

Markets are closely following global events and the upcoming earnings season would further add to the volatility. We suggest maintaining a positive trend yet cautious approach and giving preference to index major stocks. The Nifty future has the next hurdle at 11606 points.

The Nifty future continued its early momentum and made an intraday high However; we saw some profit-booking come in stock specific. Technically, the Nifty future has started to trade above its 21-DMA which shows a further upside movement in the index.

At the present level, in Nifty future downside support comes at 11530-11474 level while upside resistance is at 11606-11616 level. If the index breaks and closes above 11616 point, then 11636 can be the targets in the short term.

Dear Traders…. For the Trading Idea of…

Ø  Nifty Future opened @ 11582 as on 06.10.2020..!!

For Intraday, Nifty Future has resistance at 11606 – 11616 Point; above which other resistance levels are at 11633 – 11660 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 11547 – 11533 Point; below11533 Point, other support levels are at 11505 – 11474 Point.

I am positive for the next bullish trend only above @ 11606 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 @ 11606 Point, again then the upper side target is quite high and it may touch @ 11616 Point in the short term...!!!

ØBank Nifty Future opened @ 22723 as on 06.10.2020..!!

For Intraday, Bank Nifty Future has resistance at 22787 – 22808 Point; above which other resistance levels are at 22888 – 22909 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 22676 – 22606 Point; below22606 Point, other support levels are at 22533 – 22474 Point.

I am positive for the next bullish trend only above @ 22909 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 @ 22909 Point, again then the upper side target is quite high and it may touch @ 23008 Point in the short term...!!

Ø Trading Idea for the derivative stocks….

Ø ACC LTD FO @ RS 1430

Positive Trend @ Rs 1430 / 1414 with Stop loss of Rs @ 1408 for the target near @ Rs 1447 - 1460 in short term…..!!!

Ø HDFC BANK FO @ RS 1128

Positive Trend @ Rs 1128 / 1108 with Stop loss of Rs @ 1090 for the target near @ Rs 1142 - 1150 in short term…..!!!

Ø M & M FO @ RS 613

Positive Trend @ Rs 613 / 603 with Stop loss of Rs @ 588 for the target near @ Rs 633 - 640 in short term…..!!!

Ø GLENMARK PHARMA FO @ RS 498

Positive Trend @ Rs 498 / 488 with Stop loss of Rs @ 480 for the target near @ Rs 508 - 513 in short term…..!!!

Ø INFOSYS FO @ RS 1041

Negative Trend @ Rs 1041 / 1056 with Stop loss of Rs @ 1072 for the target near @ Rs 1028 – 1018 in short term...!!!

Ø AURO PHARMA FO @ RS 853

Negative Trend @ Rs 853 / 868 with Stop loss of Rs @ 878 for the target near @ Rs 840 – 833 in short term...!!!

Ø CIPLA LTD FO @ RS 790

Negative Trend @ Rs 790 / 808 with Stop loss of Rs @ 813 for the target near @ Rs 777 – 767 in short term...!!!

Ø WIPRO LTD FO @ RS 333

Negative Trend @ Rs 333 / 343 with Stop loss of Rs @ 350 for the target near @ Rs 324 – 318 in short term.

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