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Stock Market Daily Updates: 11 Aug 2020

In the coming days, the index-based surge is likely to continue the trend of consolidation and the side market will see a widening trend. The Nifty is placed at the crucial resistance of previous swing high of 11373 points and there is a possibility of more consolidation or range movement in the next session

Photo Credit :

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Dear Trader…

On the second day of the week, the Indian stock market started trading with a bullish trend. Funds, high net worth investors, giants, experts traded in midcap and small cap stocks as the BSE last week raised the daily price fluctuation limit of 647 stocks, i.e. the circuit limit, and increased the price fluctuations of many stocks. The Nifty opened higher on August 11 following positive global indicators but failed to move to 11349 points, which is the closest to the highest level,

Many units have given green light for one-time loan restructuring in the credit policy review by the Reserve Bank of India, in anticipation of accelerating the economic recovery in the country with the expectation of benefiting companies and the positive impact of a good monsoon across the country has led to a good rally in the Indian stock market amid buying in fund stocks as well as mixed global signals.

Sectorally, action was seen in healthcare, capital goods, realty, industrials, and utilities, while profit-taking was visible in energy, and oil & gas stocks Speaking of global signals, Pharma stocks rose sharply as well as bank and financial stocks.

the US is tightening technology controls on China and tightening the disclosure requirement for Chinese listings and the Dow Jones industrial average closed 47 points higher on Friday on the back of a steady rise in Corona cases against better-than-expected U.S. employment figures. While Asian stock markets saw weakness.

Friends, The economy is in turmoil amid the Corona epidemic, with the central government earlier announcing a massive stimulus package to revive industries and provide a number of incentives to small to medium-sized units., Has kept market sentiment steadily bullish by announcing a one-time loan restructuring. Of course, this has led to a sharp rise in the daily price fluctuation limit of 647 scrips by the BSE over the last weekend - increasing the limit of several stocks by raising funds in small, mid-cap stocks by a large influx of funds and investors. So in the coming days, the index-based surge is likely to continue the trend of consolidation and the side market will see a widening trend. The Nifty is placed at the crucial resistance of previous swing high of 11373 points and there is a possibility of more consolidation or range movement in the next session but, a sustainable move above 11373 points is likely to result in a sharp upside breakout. The weekly timeframe chart of the Nifty is still positive and there is no formation of any significant reversal pattern at the highs.

A sustainable move above 11373 points could open more upside towards 11404 – 11414 point in the near term is expected to continue in the next session. Immediate support is placed at 11272 points.

Positive setup may see in M&M, L&T, Glenmark Pharma, Tata Motors, Cadila Healthcare, Tech Mahindra, Sun Pharma, Dr Reddy's Labs, ICICI Prudential Life, Shree Cement and ITC,

Dear Traders…. For the Trading Idea of…

Nifty Future opened @ 11349 as on 11.08.2020

For Intraday, Nifty Future has resistance at 11373 – 11404 Point; above which other resistance levels are at 11418 – 11430 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 11330 – 11303 Point; below 11303 Point, other support levels are at 11288 – 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 @ 11414 Point in the short term

Bank Nifty Future opened @ 21900 as on 11.08.2020

For Intraday, Bank Nifty Future has resistance at 21970 – 22008 Point; above which other resistance levels are at 22120 – 22202 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 21838 – 21770 Point; below 21770 Point, other support levels are at 21676 – 21606 Point.

I am positive for the next bullish trend only above @ 22202 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 @ 22202 Point, again then the upper side target is quite high and it may touch @ 22272 Point in the short term 

Trading Idea for the derivative stocks….

LARSEN FO @ RS 970

Positive Trend @ Rs 970 / 960 with Stop loss of Rs @ 950 for the target near @ Rs 988 – 1002 in short term 

SUN PHARMA FO @ RS 542

Positive Trend @ Rs 542 / 530 with Stop loss of Rs @ 523 for the target near @ Rs 553 - 560 in short term 

BHARAT PETRO FO @ RS 418

Positive Trend @ Rs 418 / 408 with Stop loss of Rs @ 404 for the target near @ Rs 432 - 440 in short term 

KOTAK BANK FO @ RS 1360

Positive Trend @ Rs 1360 / 1350 with Stop loss of Rs @ 1340 for the target near @ Rs 1383 - 1390 in short term 

MUTHOOT FINANCE FO @ RS 1190

Negative Trend @ Rs 1190 / 1208 with Stop loss of Rs @ 1220 for the target near @ Rs 1177 – 1160 in short term 

HCL TECHNO FO @ RS 700

Negative Trend @ Rs 700 / 713 with Stop loss of Rs @ 720 for the target near @ Rs 688 – 682 in short term 

GRASIM FO @ RS 640

Negative Trend @ Rs 640 / 650 with Stop loss of Rs @ 660 for the target near @ Rs 628 – 618 in short term 

DIVIS LAB FO @ RS 3160

Negative Trend @ Rs 3160 / 3188 with Stop loss of Rs @ 3208 for the target near @ Rs 3131 – 3108 in short term 

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Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.


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Nikhil Bhatt | Research Analyst - SEBI

The author is a well established entrepreneur having a more than 16 years of experience in the field of stock market and financial management.

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