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Stock Market Daily Updates: 12 Aug 2020

Positive global cues influenced sentiment as hopes of stimulus from the US, improving economic data points from China and the reports of the first Coronavirus vaccine in Russia underpinned the mood of the market.

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Dear Trader…

The Indian market traded in the negative territory on August 12, The Nifty opened with a gap-down above the immediate hurdle of 11303 points and lower towards 11231 points.  It closed above the 11348  zone and has been making lows, which indicates an overall volatile stance.

The world is currently battling the Corona epidemic, Pharma giant Cipla announced encouraging quarterly results last weekend amid the growing demand for medicines and healthcare sector with the discovery of vaccines and medicines around the world. The next day saw a rebound in the Indian stock market. Along with this, the good progress of monsoon across the country maintained the attraction of choice in automobile, FMCG stocks.

Positive global cues influenced sentiment as hopes of stimulus from the US, improving economic data points from China and the reports of the first coronavirus vaccine in Russia underpinned the mood of the market.

Crude oil prices rose amid a statement from Aramco that demand for crude oil was rising as global industrial activity resumed with the announcement of economic aid-incentives by US President Donald Trump.

Friends,while the monsoon has been successful across the country this year, high growth is expected in the agricultural sector this year. Through which a good recovery is expected in the rural economy. Further progress in the monsoon will be seen in the coming days with the Indian stock market looking at the local level of retail inflation for the month of July 2020 on August 12, 2020 and the figure of wholesale inflation for August 14, 2020. Corporate results for the quarter ending June 2020 season will now look at the results to be released today for Aurobindo Pharma and Tata Power Company in 2020.

On the international front, Euro Area Industrial Production figures for June 2020 and US inflation figures for July will be released today. In the coming days, the July figure of China's Industrial Production Growth (IIP) will be released on 14 August. As the July US retail sales figures are due out on the same day, the upcoming macroeconomic data, such as CPI, and Supreme Court hearing on AGR case (Friday) would be on investors’ radar the Indian stock market will be keeping an eye on them along with the global stock markets.

The Nifty made an attempt at an upside breakout of the resistance of previous 11272 points but was not able to sustain above it and there is a possibility of downward correction from the highs.The overall trend of the last two sessions was choppy with volatile bias.

Hopes of the new COVID-19 vaccine developed by Russia lifted market sentiment. Strong buying was seen in private sector banking stocks along with financial services and metal stocks. Pharma and sugar stocks witnessed profit-booking at higher levels.

After a sharp rally in the last few days, we expect a minor correction in benchmark indices before the rally resumes. With the US election now approaching, global clues will dominate market sentiment.

Dear Traders…. For the Trading Idea of…

Nifty Future opened @ 11237 as on 12.08.2020

For Intraday, Nifty Future has resistance at 11288 – 11303 Point; above which other resistance levels are at 11330 – 11373 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 11202 – 11188 Point; below 11188 Point, other support levels are at 11133 – 11117 Point.

I am positive for the next bullish trend only above @ 11303 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 @ 11288 Point, again then the upper side target is quite high and it may touch @ 11303 Point in the short term

Bank Nifty Future opened @ 22122 as on 12.08.2020

For Intraday, Bank Nifty Future has resistance at 22188 – 22202 Point; above which other resistance levels are at 22272 – 22303 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 22088 – 22008 Point; below 22008 Point, other support levels are at 21909 – 21808 Point.

I am positive for the next bullish trend only above @ 22303 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 @ 22272 Point, again then the upper side target is quite high and it may touch @ 22303 Point in the short term 

Trading Idea for the derivative stocks 

RELIANCE FO @ RS 2015

Positive Trend @ Rs 2015 / 2002 with Stop loss of Rs @ 1990 for the target near @ Rs 2044 - 2060 in short term 

KOTAK BANK FO @ RS 1342

Positive Trend @ Rs 1342 / 1330 with Stop loss of Rs @ 1317 for the target near @ Rs 1360 - 1373 in short term

LARSEN FO @ RS 950

Positive Trend @ Rs 950 / 937 with Stop loss of Rs @ 930 for the target near @ Rs 968 - 980 in short term 

GRASIM FO @ RS 618

Positive Trend @ Rs 618 / 606 with Stop loss of Rs @ 596 for the target near @ Rs 633 - 640 in short term

ACC LTD FO @ RS 1415

Negative Trend @ Rs 1414 / 1433 with Stop loss of Rs @ 1440 for the target near @ Rs 1400 – 1388 in short term

BATA INDIA FO @ RS 1235

Negative Trend @ Rs 1235 / 1247 with Stop loss of Rs @ 1260 for the target near @ Rs 1212 – 1208 in short term

MUTHOOT FINANCE FO @ RS 1155

Negative Trend @ Rs 1150 / 1173 with Stop loss of Rs @ 1180 for the target near @ Rs 1117 – 1097 in short term

LUPIN LTD FO @ RS 955

Negative Trend @ Rs 955 / 973 with Stop loss of Rs @ 970 for the target near @ Rs 933 – 919 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.


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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