Stock Market Daily Updates: 12 Oct 2020

The Nifty future continued its early momentum and made an high However; we saw some profit-booking come in stock specific. Technically, the Nifty future has started to trade above 12008 point, its 21-DMA which shows a further upside movement in the index. 

At the present level, in Nifty future downside support comes at 11933 -11909 level while upside resistance is at 12033-12088 level. If the index breaks and closes above 11909 point, then 11888 can be the targets in the short term.

Dear Trader…

Indian stock markets were trading in fine fettle from last session due to heavy buying in banking, capital goods and industrials sectors ignoring the rising corona virus, the boom in global markets, as well as almost complete the nationwide lockdown, boosted economic activity at all levels with the manufacturing PMI hitting an eight-year high in September, GST collection also surpassing Rs 95,000 crore picked up on positive factors.

The sentiments are positive with Assocham report that India's economy has shown a remarkable resilience in the last few months, braving the impact of the corona virus pandemic with lead indicators such as manufacturing PMI and exports returning to growth trajectory. Meanwhile, Reserve Bank of India (RBI) left key interest rates unchanged but signaled more easing ahead to support an economy that it sees contracting 9.5 per cent in the current fiscal. RBI states that it will maintain comfortable liquidity conditions and conduct market operations in the form of outright and special open market operations. It will conduct on tap targeted long-term repo operations (TLTRO) with tenors of up to three years for a total amount of up to Rs 1 crore at a floating rate linked to the policy repo rate.

The disinvestment target set by the government this year is likely to be disrupted as LIC's mega IPO may not be launched in the current financial year due to various adversities. Before bringing this IPO, drastic changes have to be made in the LIC Act. Apart from this, it will take 6 to 9 months to prepare the IPO, including the implementation of other legal provisions. It may be mentioned here that the government has set a target of raising Rs 2.1 lakh crore through disinvestment for the financial year 2021, but due to other adversities including the corona epidemic, only an estimated Rs 17131 crore has been raised so far in the current financial year.

Globally, there is optimism that US President Trump will announce a relief package before the election. As the world prepares to be free of the corona epidemic, US President Donald Trump is now worried about the positive corona outbreak in global markets and the growing number of corona cases in Europe and the United States, despite assurances that the corona vaccine will be available to the world by January 2021. There is no denying the possibility of a lucrative sell-off on the global economy in the coming days.

Next week is a data heavy one and earnings of some blue-chips will provide more clarity on how the September quarter panned out. Also, keep your eyes firmly on the US, where the race for the President is entering the final lap. With Biden widening his lead, it’s certain that the fireworks are going to only increase as we approach the Election Day, which is about three weeks from now.

The Indian stock market will be keeping an eye on the potential stimulus package and Corporate India's July-September 2020 second quarter results season as the government faces huge challenges in the coming days and is forced to borrow heavily.

The Nifty future continued its early momentum and made an high However; we saw some profit-booking come in stock specific. Technically, the Nifty future has started to trade above 12008 point, its 21-DMA which shows a further upside movement in the index.

At the present level, in Nifty future downside support comes at 11933 -11909 level while upside resistance is at 12033-12088 level. If the index breaks and closes above 11909 point, then 11888 can be the targets in the short term.

Dear Traders…. For the Trading Idea of…

Nifty Future opened @ 11950 as on 12.10.2020

For Intraday, Nifty Future has resistance at 11988 – 12008 Point; above which other resistance levels are at 12033 – 12088 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 11933 – 11909 Point; below11909 Point, other support levels are at 11888 – 11833 Point.

I am positive for the next bullish trend only above @ 12008 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 @ 12008 Point, again then the upper side target is quite high and it may touch @ 12033 Point in the short term

ØBank Nifty Future opened @ 23935 as on 12.10.2020

For Intraday, Bank Nifty Future has resistance at 24008 – 24088 Point; above which other resistance levels are at 24140 – 24272 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 23909 – 23833 Point; below23833 Point, other support levels are at 23770 – 23676 Point.

I am positive for the next bullish trend only above @ 24272 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 @ 24272 Point, again then the upper side target is quite high and it may touch @ 24303 Point in the short term

Ø Trading Idea for the derivative stocks….

Ø KOTAK BANK FO @ RS 1333

Positive Trend @ Rs 1333 / 1323 with Stop loss of Rs @ 1313 for the target near @ Rs 1347 - 1360 in short term

Ø LUPIN LTD FO @ RS 1028

Positive Trend @ Rs 1028 / 1017 with Stop loss of Rs @ 1008 for the target near @ Rs 1044 – 1060 in short term

Ø GRASIM IND. FO @ RS 746

Positive Trend @ Rs 746 / 730 with Stop loss of Rs @ 717 for the target near @ Rs 760 – 774 in short term

Ø AXIS BANK FO @ RS 474

Positive Trend @ Rs 474 / 464 with Stop loss of Rs @ 450 for the target near @ Rs 484 - 490 in short term

Ø AURO PHARMA FO @ RS 841

Negative Trend @ Rs 841 / 853 with Stop loss of Rs @ 860 for the target near @ Rs 828 – 820 in short term

Ø GLENMARK PHARMA FO @ RS 498

Negative Trend @ Rs 498 / 513 with Stop loss of Rs @ 520 for the target near @ Rs 488 – 480 in short term

Ø BIOCON LTD FO @ RS 454

Negative Trend @ Rs 454 / 474 with Stop loss of Rs @ 480 for the target near @ Rs 440 – 433 in short term

Ø BHARTI AIRTEL FO @ RS 430

Negative Trend @ Rs 430 / 444 with Stop loss of Rs @ 450 for the target near @ Rs 423 – 417 in short term.

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