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Stock Market Daily Updates: 14 Aug 2020

Data showed that foreign institutional investors have turned net buyers of Indian equities in 2020 for the first time since the beginning of this year,

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After a massive sell-off amounting to $7.88 billion in March, FIIs have started re-investing in Indian equities since May with a net inflow of $2.4 billion in June and $1.1 billion in July…

Dear Trader…

The Indian stock market started trading at the expected strength and rebounded on speculation that the vaccine would be launched in India on August 15 by the Serum Institute, along with reports that Russia had invented the vaccine.

Friends, Russia’s first-ever vaccine for corona in global markets and US President Donald Trump's statement that it is considering a reduction in taxes on capital gains, as well as global stock markets will keep an eye. Apart from this, rising tensions between the US and China and the increase in Covid-19 cases have increased uncertainty.

In such a scenario, the July figures for China's Industrial Production Growth will be released on August 14 as the July US retail sales figures are due out on the same day; the Indian stock market will be keeping an eye on them along with the global stock markets.

Relief and incentives offered by the Reserve Bank of India last week are expected to help in the economic recovery and good monsoon across the country continues to buy shares of foreign funds. Indian markets are likely to consolidate further.

Data showed that foreign institutional investors (FIIs) have turned net buyers of Indian equities in 2020 for the first time since the beginning of this year.

After a massive sell-off amounting to $7.88 billion in March, FIIs have started re-investing in Indian equities since May with a net inflow of $2.4 billion in June and $1.1 billion in July.

In the year so far, FIIs have bought Indian shares worth $1.79 billion with an inflow of $3.08 billion in August, despite risk-reward for Indian markets turning unfavourable with steep valuations and weak fundamental support for equities. Uncertainties amid the rise in COVID-19 cases worldwide and escalating geopolitical tensions have also not deterred foreign investors from parking their money in equities.

While we are witnessing a correction and sideways consolidation in the short term, Nifty future holds strong potential over the long term as fundamentals are stronger than ever. Important resistance is placed at 11373 to 11440 points as per the weekly timeframe and the Nifty not showing any significant downward correction from near this hurdle could be a positive sign for the bulls for an upside breakout of the hurdle.

Hence, further movement in the market will signal an upside breakout. The short-term trend for the Nifty continues to be range-bound. The market is likely to move within 11373 - 11202 points in the next session.

Most large-cap shares were trading under pressure However, a lot will depend upon the outcome of the Supreme Court hearing on the AGR case on August 14. We thus advise continuing with hedged trades, with the bias on the positive side.

Dear Trader…For the Trading Idea of…

Nifty Future opened @ 11341 as on 14.08.2020 

For Intraday, Nifty Future has resistance at 11373 – 11388 Point; above which other resistance levels are at 11404 – 11414 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 11303 – 11288 Point; below 11288 Point, other support levels are at 11260 – 11232 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 @ 22300 as on 14.08.2020

For Intraday, Bank Nifty Future has resistance at 22373 – 22404 Point; above which other resistance levels are at 22444 – 22474 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 22220 – 22120 Point; below 22120 Point, other support levels are at 22088 – 22008 Point.

I am positive for the next bullish trend only above @ 22474 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 @ 22474 Point, again then the upper side target is quite high and it may touch @ 22505 Point in the short term

Trading Idea for the derivative stocks….

MUTHOOT FINANCE FO @ RS 1170
Positive Trend @ Rs 1170 / 1150 with Stop loss of Rs @ 1140 for the target near @ Rs 1193 - 1220 in short term 

LARSEN FO @ RS 996
Positive Trend @ Rs 996 / 980 with Stop loss of Rs @ 970 for the target near @ Rs 1014 - 1023 in short term

INFOSYS FO @ RS 958
Positive Trend @ Rs 958 / 940 with Stop loss of Rs @ 933 for the target near @ Rs 977 - 990 in short term 

CIPLA LTD FO @ RS 761
Positive Trend @ Rs 761 / 747 with Stop loss of Rs @ 740 for the target near @ Rs 777 - 787 in short term 

DIVIS LAB FO @ RS 3140
Negative Trend @ Rs 3140 / 3188 with Stop loss of Rs @ 3208 for the target near @ Rs 3117 – 3103 in short term 

HDFC FO @ RS 1828
Negative Trend @ Rs 1828 / 1848 with Stop loss of Rs @ 1868 for the target near @ Rs 1808 – 1800 in short term 

ACC LTD FO @ RS 1411
Negative Trend @ Rs 1411 / 1433 with Stop loss of Rs @ 1440 for the target near @ Rs 1396 – 1388 in short term 

AXIS BANK FO @ RS 450
Negative Trend @ Rs 450 / 460 with Stop loss of Rs @ 474 for the target near @ Rs 434 – 427 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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